##### 



EXHIBIT 1


MANAGEMENTS RESPONSIBILITY
FOR FINANCIAL STATEMENTS

The accompanying consolidated
financial statements have been
prepared by and are the responsibility of the Board of Directors and
Management of the Company.

The consolidated financial statements
have been prepared in accordance
with United States generally accepted
accounting principles and reflect
Managements best estimates and
judgements based on currently available information. The Company has
developed and maintains a system
of internal accounting controls in order
to ensure, on a reasonable and cost
effective basis, the
reliability of its
financial information.

The consolidated financial
statements have been audited
by PricewaterhouseCoopers
LLP, Chartered Accountants.
Their report outlines the
scope of their examination
and opinion on the
consolidated financial
statements.

/s/ Jamie C. Sokalsky

Jamie C. Sokalsky
Senior Vice President and Chief
Financial Officer
Toronto, Canada
February 5, 2003

|   |  |                                                     |  |  |  |  |  | 
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##### 



AUDITORS REPORT TO THE SHAREHOLDERS
OF BARRICK GOLD CORPORATION

We have audited the consolidated balance sheets of
Barrick Gold Corporation as
at December 31, 2002 and 2001 and the
consolidated statements of income,
cash flow and changes in shareholders
equity for each of the three years in
the period ended December 31, 2002.
These financial statements are the
responsibility of the Companys
Management. Our responsibility is to
express an opinion on these financial
statements based on our audits.

We conducted our audits in accordance
with generally accepted auditing
standards in both Canada and the
United States. Those standards require
that we plan and perform an audit to
obtain reasonable assurance whether
the financial statements are free of
material misstatement. An audit includes
examining, on a test basis, evidence
supporting the amounts and disclosures
in the financial statements. An audit
also includes assessing the accounting
principles used and significant estimates
made by Management, as well as evaluating the overall financial statement
presentation.

In our opinion, these
consolidated financial
statements present fairly,
in all material respects,
the financial position of
the Company as at December
31, 2002 and 2001 and the
results of its operations
and its cash flows for each
of the three years in the
period ended December 31,
2002 in accordance with
United States generally
accepted accounting
principles.

As discussed in Note 2 to
the consolidated financial
statements, during 2002 the
Company changed its policy
on accounting for deferred
stripping costs, during 2001
the Company changed its
policy on accounting for
derivative instruments, and
during 2000 the Company
changed the policy on
revenue recognition for gold
sales.

On February 5, 2003, we
reported separately to the
shareholders of
Barrick Gold Corporation on
the financial statements for
the same periods, prepared
in accordance with Canadian
generally accepted
accounting principles.

/s/ PricewaterhouseCoopers LLP

Chartered Accountants
Toronto, Canada
February 5, 2003

| |                                                     |   
| | --------------------------------------------------- | --
| | B A R R I C K   A N N U A L   R E P O R T   2 0 0 2 | 63





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##### 



CONSOLIDATED STATEMENTS OF INCOME (US GAAP BASIS)

Barrick Gold Corporation
For the years ended December 31, 2002, 2001 and 2000
(in millions of United States dollars, except per share data)

|                                                                           |                   |   |       |      |      |   |       |      |  |   |        |       |  
|-------------------------------------------------------------------------- | ----------------- | - | ----- | ---- | ---- | - | ----- | ---- |  | - | ------ | ----- | -
|                                                                           |                   |   | 2002  |      | 2001 |   | 2000 
|                                                                           |                   |   |       |      |      |   |      
|Gold
sales (note 25)                                                       |                   | $ | 1,967 |      |      | $ | 1,989 |      |  | $ | 1,936  |      
|                                                                           |                   |   |       |      |      |   |       |      |  |   |        |      
|Costs and expenses                                                         |                  
|Operating (notes 4 and 25)                                                 |                   |   | 1,071 |      |      |   | 1,080 |      |  |   | 950    |      
|Amortization (note 25)                                                     |                   |   | 519   |      |      |   | 501   |      |  |   | 493    |      
|Administration                                                             |                   |   | 64    |      |      |   | 86    |      |  |   | 75     |      
|Exploration and business development                                       |                   |   | 104   |      |      |   | 103   |      |  |   | 149    |      
|Merger and related costs (notes 3 and 15)                                  |                   |   | (2    | )    |      |   | 117   |      |  |   |       |      
|Provision for mining assets and other unusual charges (note 5)             |                   |   |      |      |      |   | 59    |      |  |   | 1,627  |      
|                                                                           |                   |   |       |      |      |   |       |      |  |   |        |      
|                                                                           |                   |   | 1,756 |      |      |   | 1,946 |      |  |   | 3,294  |      
|                                                                           |                   |   |       |      |      |   |       |      |  |   |        |      
|Interest and other income (note 6)                                         |                   |   | 29    |      |      |   | 32    |      |  |   | 14     |      
|Interest expense (note 16)                                                 |                   |   | (57   | )    |      |   | (25   | )    |  |   | (26    | )    
|Non-hedge derivative gains (losses) (note 23)                              |                   |   | (6    | )    |      |   | 33    |      |  |   | (5     | )    
|                                                                           |                   |   |       |      |      |   |       |      |  |   |        |      
|Income (loss) before income taxes and other items                          |                   |   | 177   |      |      |   | 83    |      |  |   | (1,375 | )    
|Income taxes (note 7)                                                      |                   |   | 16    |      |      |   | 14    |      |  |   | 209    |      
|                                                                           |                   |   |       |      |      |   |       |      |  |   |        |      
|Income
(loss) before cumulative effect of changes in accounting
principles |                   |   | 193   |      |      |   | 97    |      |  |   | (1,166 | )    
|Cumulative effect of changes in accounting principles (note 2)             |                   |   |      |      |      |   | (1    | )    |  |   | (23    | )    
|                                                                           |                   |   |       |      |      |   |       |      |  |   |        |      
|Net income (loss) for the year                                             |                   | $ | 193   |      |      | $ | 96    |      |  | $ | (1,189 | )    
|                                                                           |                   |   |       |      |      |   |       |      |  |   |        |      
|Earnings per share data (note 8):                                          |                   |   |       |      |      |   |       |      |  |   |        |      
|Net income (loss) before changes in accounting principles                  |                   |   |       |      |      |   |       |      |  |   |        |      
|                                                                           | Basic and diluted |   | $     | 0.36 |      |   | $     | 0.18 |  |   | $      | (2.18 | )
|Net income (loss)                                                          |                   |   |       |      |      |   |       |      |  |   |        |      
|                                                                           | Basic and diluted |   | $     | 0.36 |      |   | $     | 0.18 |  |   | $      | (2.22 | )
|                                                                           |                   |   |       |      |      |   |       |      |  |   |        |      

The accompanying notes are an integral part of these consolidated financial
statements.

|   |  |                                                     |  |  |  |  |  | 
|-- |  | --------------------------------------------------- |  |  |  |  |  | 
|64 |  | B A R R I C K  
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##### 



CONSOLIDATED STATEMENTS OF CASH FLOWS (US GAAP BASIS)

Barrick Gold Corporation
For the years ended December 31, 2002, 2001 and 2000
(in millions of United States dollars)

|                                                               |            |   |       |     |           |   |           |      |      |   |        |      |  
|-------------------------------------------------------------- | ---------- | - | ----- | --- | --------- | - | --------- | ---- | ---- | - | ------ | ---- | -
|                                                               |            |   |       |     |           |   | 2001      |      | 2000
|                                                               |            |   | 2002  |     | (note 2B) |   | (note 2B)
|                                                               |            |   |       |     |           |   |          
|OPERATING ACTIVITIES                                           |            |   |       |     |           |   |           |      |      |   |        |     
|Net income (loss) for the year                                 |            | $ | 193   |     |           | $ | 96        |      |      | $ | (1,189 | )   
|Amortization                                                   |            |   | 519   |     |           |   | 501       |      |      |   | 493    |     
|Changes in capitalized mining costs                            |            |   | 29    |     |           |   | 17        |      |      |   | 39     |     
|Provision for mining assets and other unusual charges (note 5) |            |   |      |     |           |   |          |      |      |   | 1,627  |     
|Deferred income taxes (note 7)                                 |            |   | (75   | )   |           |   | (50       | )    |      |   | (287   | )   
|Other items (note 28)                                          |            |   | (77   | )   |           |   | 24        |      |      |   | 159    |     
|                                                               |            |   |       |     |           |   |           |      |      |   |        |     
|Net cash provided by operating activities                      |            |   | 589   |     |           |   | 588       |      |      |   | 842    |     
|                                                               |            |   |       |     |           |   |           |      |      |   |        |     
|INVESTING ACTIVITIES                                           |            |   |       |     |           |   |           |      |      |   |        |     
|Property, plant and equipment                                  |            |   | (228  | )   |           |   | (474      | )    |      |   | (612   | )   
|Short-term investments                                         |            |   | 159   |     |           |   | (153      | )    |      |   | 130    |     
|(Increase) decrease in restricted cash                         |            |   |      |     |           |   | (24       | )    |      |   | 2      |     
|Purchase of mining properties (note 3)                         |            |   |      |     |           |   |          |      |      |   | (141   | )   
|Other                                                          |            |   | 11    |     |           |   | 5         |      |      |   | 10     |     
|                                                               |            |   |       |     |           |   |           |      |      |   |        |     
|Net cash used in investing activities                          |            |   | (58   | )   |           |   | (646      | )    |      |   | (611   | )   
|                                                               |            |   |       |     |           |   |           |      |      |   |        |     
|FINANCING ACTIVITIES                                           |            |   |       |     |           |   |           |      |      |   |        |     
|Proceeds from stock options exercised                          |            |   | 83    |     |           |   | 7         |      |      |   | 6      |     
|Long-term debt                                                 |            |   |       |     |           |   |           |      |      |   |        |     
|                                                               | Proceeds   |   |       |    |           |   |           | 55   |      |   |        | 236  |  
|                                                               | Repayments |   |       | (25 | )         |   |           | (152 | )    |   |        | (187 | )
|Dividends                                                      |            |   | (119  | )   |           |   | (93       | )    |      |   | (94    | )   
|                                                               |            |   |       |     |           |   |           |      |      |   |        |     
|Net cash used in financing activities                          |            |   | (61   | )   |           |   | (183      | )    |      |   | (39    | )   
|                                                               |            |   |       |     |           |   |           |      |      |   |        |     
|Effect of exchange rate changes on cash and equivalents        |            |   |      |     |           |   | (1        | )    |      |   | (6     | )   
|Net increase (decrease) in cash and equivalents                |            |   | 470   |     |           |   | (242      | )    |      |   | 186    |     
|Cash and equivalents at beginning of year(note 27)             |            |   | 574   |     |           |   | 816       |      |      |   | 630    |     
|                                                               |            |   |       |     |           |   |           |      |      |   |        |     
|Cash and equivalents at end of year(note 27)                   |            | $ | 1,044 |     |           | $ | 574       |      |      | $ | 816    |     
|                                                               |            |   |       |     |           |   |           |      |      |   |        |     

The accompanying notes are an integral part of these consolidated financial
statements.

| |  |                                                     |    |  |  | 
| |  | --------------------------------------------------- | -- |  |  | 
| |  | B A R R I C K   A N N U A L   R E P O R T   2 0 0 2 | 65





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##### 



CONSOLIDATED BALANCE SHEETS (US GAAP BASIS)

Barrick Gold Corporation
At December 31, 2002 and 2001
(in millions of United States dollars)

|                                           |                                                |   |       |       |      |   |       |       |  
|------------------------------------------ | ---------------------------------------------- | - | ----- | ----- | ---- | - | ----- | ----- | -
|                                           |                                                |   | 2002  |       | 2001
|                                           |                                                |   |       |       |     
|ASSETS                                     |                                                |   |       |       |      |   |       |      
|Current assets                             |                                                |   |       |       |      |   |       |      
|                                           | Cash and equivalents                           |   | $     | 1,044 |      |   | $     | 574   |  
|                                           | Short-term investments (note 10)               |   |       | 30    |      |   |       | 205   |  
|                                           | Accounts receivable (note 11)                  |   |       | 72    |      |   |       | 60    |  
|                                           | Inventories and other current assets (note 12) |   |       | 206   |      |   |       | 223   |  
|                                           |                                                |   |       |       |      |   |       |       |  
|                                           |                                                |   | 1,352 |       |      |   | 1,062 |      
|                                           | Property, plant and equipment (note 13)        |   |       | 3,322 |      |   |       | 3,621 |  
|                                           | Capitalized mining costs                       |   |       | 272   |      |   |       | 301   |  
|                                           | Other assets (note 14)                         |   |       | 315   |      |   |       | 218   |  
|                                           |                                                |   |       |       |      |   |       |       |  
|Total assets                               |                                                | $ | 5,261 |       |      | $ | 5,202 |      
|                                           |                                                |   |       |       |      |   |       |       |  
|LIABILITIES AND SHAREHOLDERS EQUITY       |                                                |   |       |       |      |   |       |      
|Current liabilities                        |                                                |   |       |       |      |   |       |      
|                                           | Accounts payable                               |   | $     | 164   |      |   | $     | 175   |  
|                                           | Other current liabilities (note 15)            |   |       | 319   |      |   |       | 308   |  
|                                           |                                                |   |       |       |      |   |       |       |  
|                                           |                                                |   | 483   |       |      |   | 483   |      
|                                           | Long-term debt (note 16)                       |   |       | 761   |      |   |       | 793   |  
|                                           | Other long-term obligations (note 17)          |   |       | 422   |      |   |       | 443   |  
|                                           | Net deferred income tax liabilities (note 18)  |   |       | 261   |      |   |       | 291   |  
|                                           |                                                |   |       |       |      |   |       |       |  
|Total liabilities                          |                                                |   | 1,927 |       |      |   | 2,010 |      
|                                           |                                                |   |       |       |      |   |       |       |  
|Shareholders equity                       |                                                |   |       |       |      |   |       |      
|                                           | Capital stock (note 19)                        |   |       | 4,148 |      |   |       | 4,062 |  
|                                           | Deficit                                        |   |       | (689  | )    |   |       | (763  | )
|                                           | Accumulated other comprehensive loss (note 9)  |   |       | (125  | )    |   |       | (107  | )
|                                           |                                                |   |       |       |      |   |       |       |  
|Total shareholders equity                 |                                                |   | 3,334 |       |      |   | 3,192 |      
|                                           |                                                |   |       |       |      |   |       |       |  
|Commitments and contingencies (note 22)    |                                                |   |       |       |      |   |       |      
|                                           |                                                |   |       |       |      |   |       |       |  
|Total liabilities and shareholders equity |                                                | $ | 5,261 |       |      | $ | 5,202 |      
|                                           |                                                |   |       |       |      |   |       |       |  

The accompanying notes are an integral part of these consolidated financial
statements.

Signed on behalf of the Board

|                                                  |  |                                                           
|------------------------------------------------- |  | ----------------------------------------------------------
|/s/ Gregory C. Wilkins
Gregory C.Wilkins
Director |  | /s/ C. William D. Birchall
C. William D. Birchall
Director

|   |  |                                                     |  |  |  |  |  | 
|-- |  | --------------------------------------------------- |  |  |  |  |  | 
|66 |  | B A R R I C K  
A N N U A L   R E P O R T   2 0 0 2





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##### 



CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY
AND COMPREHENSIVE INCOME (LOSS) (US GAAP BASIS)

Barrick Gold Corporation
For the years ended December 31, 2002, 2001 and 2000
(in millions of United States dollars)

STATEMENT OF SHAREHOLDERS EQUITY

|                                              |                                              |   |       |    |      |   |       |    |  |   |        |    | 
|--------------------------------------------- | -------------------------------------------- | - | ----- | -- | ---- | - | ----- | -- |  | - | ------ | -- | 
|                                              |                                              |   | 2002  |    | 2001 |   | 2000 
|                                              |                                              |   |       |    |      |   |      
|Common shares(number in millions)             |                                              |   |       |    |      |   |       |    |  |   |        |   
|At January 1                                  |                                              |   | 536   |    |      |   | 536   |    |  |   | 534    |   
|                                              | Issued for cash/on exercise of stock options |   |       | 6  |      |   |       |   |  |   |        | 1  | 
|                                              | Issued on purchase of mining property        |   |       |   |      |   |       |   |  |   |        | 1  | 
|                                              |                                              |   |       |    |      |   |       |    |  |   |        |   
|At December 31                                |                                              |   | 542   |    |      |   | 536   |    |  |   | 536    |   
|                                              |                                              |   |       |    |      |   |       |    |  |   |        |   
|Common shares(amount in millions)             |                                             
|At January 1                                  |                                              | $ | 4,062 |    |      | $ | 4,051 |    |  | $ | 4,025  |   
|                                              | Issued for cash/on exercise of stock options |   |       | 86 |      |   |       | 11 |  |   |        | 9  | 
|                                              | Issued on purchase of mining property        |   |       |   |      |   |       |   |  |   |        | 17 | 
|                                              |                                              |   |       |    |      |   |       |    |  |   |        |   
|At December 31                                |                                              | $ | 4,148 |    |      | $ | 4,062 |    |  | $ | 4,051  |   
|                                              |                                              |   |       |    |      |   |       |    |  |   |        |   
|Retained earnings (deficit)                   |                                              |   |       |    |      |   |       |    |  |   |        |   
|At January 1                                  |                                              | $ | (763  | )  |      | $ | (766  | )  |  | $ | 517    |   
|Net income (loss)                             |                                              |   | 193   |    |      |   | 96    |    |  |   | (1,189 | ) 
|Dividends                                     |                                              |   | (119  | )  |      |   | (93   | )  |  |   | (94    | ) 
|                                              |                                              |   |       |    |      |   |       |    |  |   |        |   
|At December 31                                |                                              | $ | (689  | )  |      | $ | (763  | )  |  | $ | (766   | ) 
|Accumulated other comprehensive loss (note 9) |                                              | $ | (125  | )  |      | $ | (107  | )  |  | $ | (95    | ) 
|                                              |                                              |   |       |    |      |   |       |    |  |   |        |   
|Total shareholders equity at December 31     |                                              | $ | 3,334 |    |      | $ | 3,192 |    |  | $ | 3,190  |   
|                                              |                                              |   |       |    |      |   |       |    |  |   |        |   

STATEMENT OF COMPREHENSIVE INCOME (LOSS)

|                                                                                  |  |      |     |      |  |      |     |   |  |   |        |  
|--------------------------------------------------------------------------------- |  | ---- | --- | ---- |  | ---- | --- | - |  | - | ------ | -
|                                                                                  |  | 2002 |     | 2001 |  | 2000
|                                                                                  |  |      |     |      |  |     
|Net income (loss)                                                                 |  | $    | 193 |      |  | $    | 96  |   |  | $ | (1,189 | )
|Foreign currency translation adjustments                                          |  |      | (21 | )    |  |      | (26 | ) |  |   | (60    | )
|Transfers of realized (gains) losses on derivative instruments to earnings        |  |      | (21 | )    |  |      | 25  |   |  |   |       |  
|Change in fair value of cash flow hedges                                          |  |      | 28  |      |  |      |    |   |  |   |       |  
|Additional minimum pension liability                                              |  |      | (2  | )    |  |      | (5  | ) |  |   |       |  
|Transfers of realized (gains) losses on available-for-sale securities to earnings |  |      | 4   |      |  |      | (2  | ) |  |   | (7     | )
|Unrealized losses on available for sale securities                                |  |      | (6  | )    |  |      | (4  | ) |  |   |       |  
|                                                                                  |  |      |     |      |  |      |     |   |  |   |        |  
|Comprehensive income (loss)                                                       |  | $    | 175 |      |  | $    | 84  |   |  | $ | (1,256 | )
|                                                                                  |  |      |     |      |  |      |     |   |  |   |        |  

The accompanying notes are an integral part of these consolidated financial
statements.

| |                                                     |  |    |  |  | 
| | --------------------------------------------------- |  | -- |  |  | 
| | B A R R I C K   A N N U A L   R E P O R T   2 0 0 2 |  | 67





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##### 



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Barrick Gold
Corporation

Tabular dollar amounts in millions of United States dollars, unless otherwise shown.
References to C$ and A$ are to Canadian and Australian dollars, respectively.

1 > NATURE OF
OPERATIONS

Barrick Gold Corporation (Barrick or the Company)
engages in the production and sale of gold, including
related mining activities such as exploration, development,
mining and processing. We also use derivative instruments
in a risk management program that seeks to mitigate the
effect of volatility in commodity prices, interest rates and
foreign currency exchange rates on our business (refer
to note 23). Our operations are mainly located in the
United States, Canada, Australia, Peru, Tanzania, Chile
and Argentina. They require specialized facilities and
technology, and we rely on those facilities to support our
production levels. The market price of gold, quantities of
gold mineral reserves and gold production levels, cash
operating costs, interest rates and the level of exploration
expenditures are some of the things that affect our
operating cash flow and profitability. Due to the global
nature of our operations, we are also affected by such
things as fluctuations in foreign currency exchange rates,
political risk and varying levels of taxation. We seek to
mitigate the risks associated with our business, but many
of the factors affecting these risks are beyond our control.

2 > SIGNIFICANT ACCOUNTING
POLICIES

A    Basis of presentation
The United States dollar is the principal currency
of our operations. We prepare and file our primary
consolidated financial statements in United States
dollars and under United States generally accepted
accounting principles (US GAAP). We include
consolidated financial statements prepared under
Canadian GAAP (in United States dollars) in our
Proxy Statement that we file with various Canadian
regulatory authorities. Summarized below are the
accounting policies under US GAAP that we consider
particularly significant to us. References to the
Company in these financial statements relate to Barrick
and its consolidated subsidiaries. We have reclassified
certain prior-year amounts to conform with the current
year presentation.

The preparation of financial statements under
US GAAP requires us to make estimates and
assumptions that affect:

|  |  |                                                         
|- |  | --------------------------------------------------------
|> |  | the reported amounts of assets and liabilities;         
|  |  |                                                         
|> |  | disclosures of contingent assets and liabilities; and   
|  |  |                                                         
|> |  | revenues and expenses recorded in each reporting period.

The most significant estimates and assumptions that
affect our financial position and results of operations
are those that use estimates of proven and probable
gold reserves, and/or assumptions of future gold prices.
Such estimates and assumptions affect:

|  |  |                                                                                                   
|- |  | --------------------------------------------------------------------------------------------------
|> |  | the value of inventories (which are stated at the lower
of average cost and net realizable value);
|  |  |                                                                                                   
|> |  | decisions as to when exploration and mine development
costs should be capitalized or expensed;    
|  |  |                                                                                                   
|> |  | whether property, plant and equipment and capitalized
mining costs may be impaired;               
|  |  |                                                                                                   
|> |  | our ability to realize income tax benefits recorded
as deferred income tax assets; and            
|  |  |                                                                                                   
|> |  | the rate at which we charge amortization to earnings.                                             

We also estimate:

|  |  |                                                                    
|- |  | -------------------------------------------------------------------
|> |  | costs associated with reclamation and closure
of mining properties;
|  |  |                                                                    
|> |  | remediation costs for inactive properties;                         
|  |  |                                                                    
|> |  | the fair values of derivative instruments; and                     
|  |  |                                                                    
|> |  | the likelihood and amounts associated with contingencies.          

|   |  |                                                     |  |  |  |  |  | 
|-- |  | --------------------------------------------------- |  |  |  |  |  | 
|68 |  | B A R R I C K   A N N U A L   R E P O R T   2 0 0 2





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##### 



We regularly review the estimates and
assumptions that affect our financial
statements; however, what actually
happens could differ from those
estimates and assumptions.

B    Accounting changes

Deferred stripping costs

Historically, we classified deferred stripping costs as part
of Property, plant and equipment on our consolidated
balance sheet. In 2002 we began classifying these costs
as a separate line item, Capitalized mining costs. Total
capitalized mining costs at December 31, 2002 were
$272 million. The comparative amount at December 31,
2001, of $301 million has also been reclassified.

Also, we historically classified expenditures for stripping
costs as part of purchases of property, plant and
equipment in Investing activities in our consolidated
statement of cash flows. In 2002, we began classifying
these expenditures as part of changes in Capitalized mining
costs in Operating activities. Expenditures for stripping
costs for the year ended December 31, 2002 were
$121 million. We also reclassified the comparative amounts
for 2001 of $133 million and 2000 of $98 million. We made
these changes to reflect the operating nature of stripping
activities. These changes had no effect on earnings.

Accounting for derivative
instruments

We adopted Statement of Financial Accounting Standards
No. 133, Accounting for Derivative Instruments and
Hedging Activities, and Statement of Financial Accounting
Standards No. 138, Accounting for Certain Derivative
Instruments and Certain Hedging Activities, (collectively
FAS 133), on January 1, 2001. On adoption, we recorded
the fair value of derivative instruments as follows:

|                      |                                                  |        |   |                   |   |            |   |     |   |  |   |     |    |  | 
|--------------------- | ------------------------------------------------ | ------ | - | ----------------- | - | ---------- | - | --- | - |  | - | --- | -- |  | 
|                      |                                                  |        |   | Carrying          |   |            |   |     |   |  |   |     |   
|At January 1, 2001    |                                                  | amount |   | Fair value        |   | Adjustment
|                      |                                                  |        |   |                   |   |           
|                      |                                                  |        |   | Asset (liability) |   | Loss      
|                      |                                                  |        |   |                   |   |           
|Hedge derivatives     |                                                  |        |   |                   |   |            |   |     |   |  |   |     |   
|                      | Purchased gold call options                      |        | $ | 44                |   |            | $ | 5   |   |  | $ | (39 | )1 | 
|Non-hedge derivatives |                                                  |        |   |                   |   |            |   |     |   |  |   |     |   
|                      | Written gold call options and total return swaps |        | $ | (42               | ) |            | $ | (42 | ) |  |   |    |    | 
|                      | Other derivatives                                |        | $ |                  |   |            | $ | (3  | ) |  | $ | (3  | )2 | 



---

|1 |  | Recorded in Other Comprehensive Income (OCI), net of tax benefits of
$4 million. We also reclassified into OCI deferred gains on hedge contracts
that had been closed out in previous years that totaled $35 million.
|- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| 
|2 |  | Recorded as a cumulative effect accounting change in earnings, net of tax
benefits of $2 million.                                                                                                                    

Revenue recognition
In 2000 we implemented Staff
Accounting Bulletin No. 101 (SAB
101), Revenue Recognition. Under SAB 101,
we recognize revenue when we deliver
gold bullion to counterparties.
Previously, we recognized revenue when
gold was in doré form, under
long-standing industry practice. The
effect of this change was to increase
our net loss by $25 million in 2000,
including the cumulative effect of $23 million,
and basic net loss per share by $0.04.

C    Basis of consolidation
These consolidated financial statements
include the accounts of Barrick and its
subsidiaries. Intercompany transactions
and balances are eliminated upon
consolidation. We control our
subsidiaries through existing majority
voting interests. Under long-standing
practice for extractive industries, we
present our proportionate interest in the
assets, liabilities, revenues, expenses
and cash flows of unincorporated joint
ventures in our financial statements.

D    Foreign currency
translation
The functional currency of all our
operations, except for our Argentinean
operations where it is the Argentinean
peso, is the United States dollar (the
US dollar). Except for our Argentinean
operations, we remeasure balances into US
dollars as follows:

|  |  |                                                                                                                                                 
|- |  | ------------------------------------------------------------------------------------------------------------------------------------------------
|> |  | non-monetary assets and liabilities using historical rates;                                                                                     
| 
|> |  | monetary assets and liabilities using period-end exchange rates; and                                                                            
| 
|> |  | income and expenses using average exchange rates, except for expenses related to assets and
liabilities remeasured at historical exchange rates.

Gains and losses arising from
remeasurement of foreign currency
financial statements into US dollars, and
from foreign currency transactions, are
included in earnings.

For our Argentinean operations, we
translate assets and liabilities into
US dollars using period-end exchange
rates; and revenues and expenses using
average rates. We record the resulting
translation adjustments in a
cumulative translation adjustments
account in Other Comprehensive Income
(OCI), a part of shareholders
equity.

| |                                                          
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##### 



After the merger with Homestake in
2001, various changes in economic facts
and circumstances led us to conclude
that the functional currency of certain
of its operations is the United States
dollar and not the local currency.
These changes included the denomination
of selling prices for gold production,
and more use of United States dollar
financing.

For periods before January 1, 2002, the
financial statements of those operations
were translated as follows: assets and
liabilities using period-end exchange
rates; and revenues and expenses at
average rates. Translation adjustments
were included in OCI.

E    Other significant accounting
policies
Other aspects of our financial
statements including our other
significant accounting policies, and the
note and page where they can be found
are:

|                                                      |  |      |    |      |  |  |    | 
|----------------------------------------------------- |  | ---- | -- | ---- |  |  | -- | 
|                                                      |  | Note |    | Page
|                                                      |  |      |    |     
|Business combinations and property acquisitions       |  |      | 3  |      |  |  | 71 | 
|Operating costs                                       |  |      | 4  |      |  |  | 72 | 
|Provision for mining assets and other unusual charges |  |      | 5  |      |  |  | 72 | 
|Interest and other income                             |  |      | 6  |      |  |  | 72 | 
|Income taxes                                          |  |      | 7  |      |  |  | 73 | 
|Earnings per share                                    |  |      | 8  |      |  |  | 73 | 
|Comprehensive income                                  |  |      | 9  |      |  |  | 74 | 
|Investments                                           |  |      | 10 |      |  |  | 74 | 
|Accounts receivable and revenue recognition           |  |      | 11 |      |  |  | 75 | 
|Inventories                                           |  |      | 12 |      |  |  | 75 | 
|Property, plant and equipment                         |  |      | 13 |      |  |  | 76 | 
|Other assets                                          |  |      | 14 |      |  |  | 76 | 
|Other current liabilities                             |  |      | 15 |      |  |  | 77 | 
|Long-term debt                                        |  |      | 16 |      |  |  | 77 | 
|Reclamation and closure costs                         |  |      | 17 |      |  |  | 78 | 
|Other post-retirement benefits                        |  |      | 17 |      |  |  | 78 | 
|Deferred income taxes                                 |  |      | 18 |      |  |  | 79 | 
|Capital stock                                         |  |      | 19 |      |  |  | 80 | 
|Stock options                                         |  |      | 20 |      |  |  | 80 | 
|Restricted stock units                                |  |      | 20 |      |  |  | 82 | 
|Pension plans                                         |  |      | 21 |      |  |  | 82 | 
|Contingencies                                         |  |      | 22 |      |  |  | 83 | 
|Derivative instruments                                |  |      | 23 |      |  |  | 86 | 
|Fair value of financial instruments                   |  |      | 24 |      |  |  | 92 | 
|Segment information                                   |  |      | 25 |      |  |  | 93 | 
|Joint ventures                                        |  |      | 26 |      |  |  | 95 | 
|Cash and equivalents                                  |  |      | 27 |      |  |  | 95 | 

F    Recently issued accounting
pronouncements
FAS 143, Accounting for asset retirement obligations
In June 2001, the FASB issued Statement No. 143,
Accounting for Asset Retirement Obligations (FAS 143),
which addresses financial accounting and reporting for
obligations associated with the retirement of tangible
long-lived assets and the associated asset retirement
costs. It applies to legal obligations associated with the
retirement of long-lived assets that result from the
acquisition, construction, development and/or the
normal operation of a long-lived asset. FAS 143 requires
entities to record the fair value of a liability for an asset
retirement obligation in the period in which it is
incurred. When a liability is initially recorded, an entity
capitalizes the cost by increasing the carrying amount
of the related long-lived asset. Over time, a liability
is increased each period to reflect an interest element
considered in its initial measurement at fair value, and
the capitalized cost is amortized over the useful life of
the related asset. Upon settlement of the liability,
we will record any gain or loss that occurs. FAS 143 is
effective for financial statements issued for fiscal years
beginning after June 15, 2002. On adoption of FAS 143
in our balance sheet we will record an increase in property,
 plant and equipment by $39 million; an increase
in other long-term obligations by $32 million; and an
increase in deferred income tax liabilities by $3 million.
A $4 million credit for the cumulative effect of this
change will be recorded in the income statement.

FAS 146, Accounting for costs associated
with exit or disposal activities
In June 2002, the FASB issued Statement No. 146,
Accounting for Costs Associated with Exit or Disposal
Activities (FAS 146). FAS 146 addresses issues relating
to the recognition, measurement, and reporting of costs
associated with exit and disposal activities, including
restructuring activities.

FAS 146 requires that the initial liability for costs
associated with exit and disposal activities be measured
at fair value. It prohibits the recognition of a liability
based solely on an entitys commitment to a plan, and
requires that the liability for costs associated with exit
and disposal activities be re-evaluated each subsequent
reporting period. FAS 146 requires costs for which
a liability is not recorded expensed as incurred, even

|   |  |                                                    
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##### 



if those costs are incremental to other
operating costs and will be incurred as
a direct result of the plan. FAS 146 is
effective for exit or disposal
activities initiated after December 31,
2002. Retroactive application of FAS 146
is prohibited, so liabilities recognized
prior to the initial application of FAS
146 will continue to be accounted for
under existing guidance.

FAS 148, Accounting for stock-based
compensation  transition and disclosure
In December 2002, the FASB issued Statement No. 148,
Accounting for Stock-Based Compensation  Transition
and Disclosure  an amendment of FAS 123 (FAS 148).
FAS 148 provides additional transition guidance for
companies that elect to voluntarily adopt the fair value
accounting provisions of FAS 123. FAS 148 does not
change the provisions of FAS 123 that permit companies
to continue to apply the intrinsic value method under
APB 25, the method which we use.

FAS 148 requires certain new disclosures that are
incremental to those under FAS 123. Those disclosures
are intended to overcome concerns about the potential
lack of comparability arising from the FASBs decision
to permit multiple transition methods. We adopted the
annual disclosure provisions of FAS 148 in these
financial statements.

FIN 45, Guarantors accounting and disclosure
requirements for guarantees
In November 2002, the FASB issued Interpretation
No. 45, Guarantors Accounting and Disclosure
Requirements for Guarantees (FIN 45). FIN 45 clarifies
the requirements of Statement No. 5, Accounting for
Contingencies, relating to a guarantors accounting
for, and disclosure of, the issuance of certain types
of guarantees. FIN 45 requires that upon issuance
of a guarantee, the guarantor must recognize a liability
for the fair value of the obligation it assumes under
that guarantee. The disclosure provisions of FIN 45
are effective for these financial statements, but
the provisions for recognition and measurement are
effective only for guarantees that are issued or
modified after December 31, 2002.

3 > BUSINESS COMBINATIONS
AND PROPERTY ACQUISITIONS
A Homestake Mining Company
On December 14, 2001, a wholly-owned subsidiary
of Barrick merged with Homestake Mining Company
(Homestake). Under the terms of the merger
agreement, we issued 139.5 million Barrick common
shares in exchange for all the outstanding common
shares of Homestake, using an exchange ratio of 0.53:1.
The merger was accounted for as a pooling-of-interests.
The consolidated financial statements give retroactive
effect to the merger, with all periods presented as
if Barrick and Homestake had always been combined.

In 2001, we recorded charges for merger-related costs
totaling $117 million ($107 million after tax). These costs
included transaction costs of $32 million for investment
banking, legal, accounting and other costs directly
related to the merger. They also include integration and
restructuring costs of $85 million, mainly for employee
termination costs.

B    Pangea Goldfields Inc.
On July 27, 2000, we acquired Pangea
Goldfields Inc.,decision an exploration
company, for cash of $131 million. We
accounted for the acquisition as a
purchase, and assigned values of $140
million to total assets acquired,
including $16 million in cash and $9
million to liabilities acquired.

C    Round Mountain Mine
On July 1, 2000, we acquired a further
25% interest in the
Round Mountain Mine for $43 million,
increasing our ownership interest from
25% to 50%. The purchase consideration
consisted of 1.4 million newly issued
common shares and cash of $26
million. We accounted for the transaction
as a purchase, and allocated $3 million
to working capital, $45 million to
property, plant and equipment and $5
million to reclamation obligations.

| |                                                     |  |    |  |  | 
| | --------------------------------------------------- |  | -- |  |  | 
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##### 



4 > OPERATING COSTS

|                                         |  |      |       |      |  |      |       |   |  |   |      |   | 
|---------------------------------------- |  | ---- | ----- | ---- |  | ---- | ----- | - |  | - | ---- | - | 
|For the years ended December 31          |  | 2002 |       | 2001 |  | 2000
|                                         |  |      |       |      |  |     
|Cost of goods sold                       |  | $    | 964   |      |  | $    | 944   |   |  | $ | 841  |  
|Amortization of capitalized mining costs |  |      | 150   |      |  |      | 150   |   |  |   | 137  |  
|By-product revenues                      |  |      | (119  | )    |  |      | (112  | ) |  |   | (111 | )
|Royalty expenses                         |  |      | 37    |      |  |      | 39    |   |  |   | 42   |  
|Production taxes                         |  |      | 5     |      |  |      | 5     |   |  |   | 6    |  
|Reclamation and closure costs            |  |      | 34    |      |  |      | 54    |   |  |   | 35   |  
|                                         |  |      |       |      |  |      |       |   |  |   |      |  
|                                         |  | $    | 1,071 |      |  | $    | 1,080 |   |  | $ | 950  |  
|                                         |  |      |       |      |  |      |       |   |  |   |      |  

A    Amortization of capitalized
mining costs
We charge most mine operating costs to inventory
as incurred. However, we defer and amortize certain
mining costs associated with open-pit deposits that
have diverse ore grades and waste-to-ore ton ratios
over the mine life. These mining costs arise from the
removal of waste rock at our open-pit mines, and we
commonly refer to them as deferred stripping costs.
We record amortization of amounts deferred based
on a stripping ratio using the units-of-production
method. This accounting method results in the
smoothing of these costs over the life of mine, rather
than expensing them as incurred. Some mining
companies expense these costs as incurred, which may
result in the reporting of greater volatility in period
to period results of operations. The application of our
deferred stripping accounting policy in 2002 resulted
in an increase in operating costs of $29 million
compared to actual costs incurred (2001  $17 million
increase, 2000  $39 million increase). Capitalized
mining costs represent the excess of costs capitalized
over amortization recorded, although it is possible that
a liability could arise if cumulative amortization exceeds
costs capitalized. The carrying amount of Capitalized
mining costs is included with related mining property,
plant and equipment for impairment testing purposes.

Average stripping ratios1

|                                |  |  |       |  |  |  |      |  |  |  |      | 
|------------------------------- |  |  | ----- |  |  |  | ---- |  |  |  | ---- | 
|For the years ended December 31 |  |  | 2002  |  |  |  | 2001 |  |  |  | 2000 | 
|                                |  |  |       |  |  | 
|Betze-Post (Goldstrike)         |  |  | 112:1 |  |  |  | 98:1 |  |  |  | 98:1 | 
|Pierina                         |  |  | 48:1  |  |  |  | 21:1 |  |  |  | 19:1 | 



|1 |  | The stripping ratio is calculated
as the ratio of total tons (ore and
waste) of material to be moved
compared to total recoverable proven
and probable gold reserves.
|- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------

The average remaining life of the
above-mentioned open-pit mine operations
for which we capitalize mining costs is
9 years. The full amount of stripping
costs incurred will be expensed by the
end of the mine lives.

B    Royalties
Most of our properties are subject to
royalty obligations based on minerals
production at the properties, under
various methods of calculation. The most
significant royalties are at Goldstrike,
Bulyanhulu and Pascua-Lama. Most
Goldstrike production is subject to a net
smelter return (NSR) or net profits
interest (NPI) royalty payable on the
value of mineral production. The highest
Goldstrike royalties are a 5% NSR and a
6% NPI. Bulyanhulu is subject to an
NSR-type royalty of 3%. A part of
Pascua-Lama gold production will be
subject to a gross proceeds sliding scale
royalty, ranging from 1.5% to 10%, and a
2% NSR royalty on copper production.
Another part of Pascua-Lama is subject to
a 3% NSR royalty on extraction of all
gold, silver, and other ores.

5 > PROVISION FOR MINING
ASSETS AND OTHER UNUSUAL
CHARGES

|                                |  |      |   |      |  |      |    |  |  |   |        | 
|------------------------------- |  | ---- | - | ---- |  | ---- | -- |  |  | - | ------ | 
|For the years ended December 31 |  | 2002 |   | 2001 |  | 2000
|                                |  |      |   |      |  |     
|Provision for mining assets     |  | $    |  |      |  | $    |   |  |  | $ | 1,6001 | 
|Inmet litigation (note 22)      |  |      |  |      |  |      | 59 |  |  |   |       | 
|Other                           |  |      |  |      |  |      |   |  |  |   | 27     | 
|                                |  |      |   |      |  |      |    |  |  |   |        | 
|                                |  | $    |  |      |  | $    | 59 |  |  | $ | 1,627  | 
|                                |  |      |   |      |  |      |    |  |  |   |        | 



|1 |  | In 2000, we completed a review of
our property, plant and equipment
that was mainly triggered by the
level of gold prices at the time,
using the policy described in note
13C. As a result, we reduced the
carrying values of various assets to
their estimated fair values. The
review was triggered by a number of
events, including our long-term view
of the price of gold at the time of
the review. We recorded a $1.6
billion non-cash provision to write
down various assets, including the
Pascua-Lama Project in Chile and
Argentina; the Pierina property in
Peru and certain exploration
properties; low-grade stockpile
inventories and the carrying amount
of our SJ royalty claims at the
Betze-Post Mine in the United
States; and the Bousquet Mine in
Canada.
|- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

6 > INTEREST AND OTHER INCOME

|                                            |  |      |    |      |  |      |     |   |  |   |     |  
|------------------------------------------- |  | ---- | -- | ---- |  | ---- | --- | - |  | - | --- | -
|For the years ended December 31             |  | 2002 |    | 2001 |  | 2000
|                                            |  |      |    |      |  |     
|Interest income                             |  | $    | 28 |      |  | $    | 36  |   |  | $ | 49  |  
|Foreign currency translation
gains (losses) |  |      | 2  |      |  |      | (10 | ) |  |   | (18 | )
|Other                                       |  |      | (1 | )    |  |      | 6   |   |  |   | (17 | )
|                                            |  |      |    |      |  |      |     |   |  |   |     |  
|                                            |  | $    | 29 |      |  | $    | 32  |   |  | $ | 14  |  
|                                            |  |      |    |      |  |      |     |   |  |   |     |  

|   |  |                                                     |  |  |  |  |  | 
|-- |  | --------------------------------------------------- |  |  |  |  |  | 
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7 > INCOME TAXES

|                                |         |      |     |      |   |      |     |     |   |   |     |     |  
|------------------------------- | ------- | ---- | --- | ---- | - | ---- | --- | --- | - | - | --- | --- | -
|For the years ended December 31 |         | 2002 |     | 2001 |   | 2000
|                                |         |      |    
|Current                         |         |      |     |      |   |      |     |     |   |   |     |    
|                                | Canada  |      | $   | (44  | ) |      | $   | (14 | ) |   | $   | (23 | )
|                                | Foreign |      |     | (15  | ) |      |     | (22 | ) |   |     | (55 | )
|                                |         |      |     |      |   |      |     |     |   |   |     |    
|                                |         |      | (59 | )    |   |      | (36 | )   |   |   | (78 | )  
|                                |         |      |     |      |   |      |     |     |   |   |     |    
|Deferred (note 18)              |         |      |     |      |   |      |     |     |   |   |     |    
|                                | Canada  |      |     | 45   |   |      |     | 74  |   |   |     | 68  |  
|                                | Foreign |      |     | 30   |   |      |     | (24 | ) |   |     | 219 |  
|                                |         |      |     |      |   |      |     |     |   |   |     |    
|                                |         |      | 75  |      |   |      | 50  |     |   |   | 287 |    
|                                |         |      |     |      |   |      |     |     |   |   |     |    
|Income taxes                    |         | $    | 16  |      |   | $    | 14  |     |   | $ | 209 |    
|                                |         |      |     |      |   |      |     |     |   |   |     |    

Because we operate in a specialized
industry and in several tax
jurisdictions, our income is subject
to varying rates of taxation. Major
items causing our income tax rate to
differ from the Canadian federal
statutory rate of 38% are:

|                                                          |                                                          |      |     |      |   |      |     |     |   |   |     |      |  
|--------------------------------------------------------- | -------------------------------------------------------- | ---- | --- | ---- | - | ---- | --- | --- | - | - | --- | ---- | -
|For the years ended December 31                           |                                                          | 2002 |     | 2001 |   | 2000
|                                                          |                                                          |      |     |      |   |     
|Income tax (expense) credit
based on statutory rate       |                                                          | $    | (67 | )    |   | $    | (32 | )   |   | $ | 523 |     
|(Increase) decrease resulting from:                       |                                                          |      |     |      |   |      |     |     |   |   |     |     
|                                                          | Resource and depletion allowances                        |      |     | 12   |   |      |     | 11  |   |   |     | 29   |  
|                                                          | Earnings in foreign jurisdictions
at different tax rates |      |     | 67   |   |      |     | 84  |   |   |     | 76   |  
|                                                          | Provision for mining assets                              |      |     |     |   |      |     |    |   |   |     | (331 | )
|                                                          | Non-deductible expenses                                  |      |     | (9   | ) |      |     | (56 | ) |   |     | (35  | )
|                                                          | Changes in valuation allowance                           |      |     | (43  | ) |      |     | (45 | ) |   |     | 27   |  
|                                                          | Outcome of income tax
uncertainties                      |      |     | 22   |   |      |     |    |   |   |     |     |  
|                                                          | Other                                                    |      |     | 34   |   |      |     | 52  |   |   |     | (80  | )
|                                                          |                                                          |      |     |      |   |      |     |     |   |   |     |     
|Income tax credit                                         |                                                          | $    | 16  |      |   | $    | 14  |     |   | $ | 209 |     
|                                                          |                                                          |      |     |      |   |      |     |     |   |   |     |     
|The main temporary differences
and their tax effects are: |                                                          |      |     |      |   |      |     |     |   |   |     |     
|                                                          | Amortization                                             |      | $   | 52   |   |      | $   | 21  |   |   | $   | 8    |  
|                                                          | Reclamation costs                                        |      |     | (4   | ) |      |     | (8  | ) |   |     | 8    |  
|                                                          | Net operating losses                                     |      |     | 22   |   |      |     | 37  |   |   |     | 19   |  
|                                                          | Provision for mining assets                              |      |     |     |   |      |     |    |   |   |     | 267  |  
|                                                          | Other                                                    |      |     | 5    |   |      |     |    |   |   |     | (15  | )
|                                                          |                                                          |      |     |      |   |      |     |     |   |   |     |     
|                                                          |                                                          | $    | 75  |      |   | $    | 50  |     |   | $ | 287 |     
|                                                          |                                                          |      |     |      |   |      |     |     |   |   |     |     

8 > EARNINGS PER SHARE
We compute basic earnings per share by
dividing net income or loss (the
numerator) by the weighted-average number
of outstanding common shares for the
period (the denominator). In computing
diluted earnings per share, an adjustment
is made for the dilutive effect of the
exercise of stock options. In periods
where a net loss is reported, such as in
2000, basic and diluted loss per share
are the same because the effect of the
exercise of stock options would be
anti-dilutive.

The weighted-average number of common
shares outstanding for the year was 541
million shares (2001   536 million
shares, 2000  535 million shares). The
number of shares for the diluted net
income per share calculation was 541
million shares (2001  538 million
shares, 2000  535 million shares).

| |                                                     |  |    |  |  | 
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##### 



9 > COMPREHENSIVE INCOME (LOSS)

Comprehensive income consists of net
income or loss and other gains and
losses that are excluded from net income
or loss. Other gains and losses consist
mainly of gains and losses on derivative
instruments accounted for as cash flow hedges;
unrealized gains and losses on
investments; and foreign currency
translation adjustments.

Parts of comprehensive income (loss)

|                                                                                  |  |         |     |             |  |         |     |             |  |         |     |             |  |   |    |   |  |   |     |   |  |   |   | 
|--------------------------------------------------------------------------------- |  | ------- | --- | ----------- |  | ------- | --- | ----------- |  | ------- | --- | ----------- |  | - | -- | - |  | - | --- | - |  | - | - | 
|For the years ended December 31                                                   |  | 2002    |     | 2001        |  | 2000   
|                                                                                  |  |         |     |             |  |        
|                                                                                  |  | Pre-tax |     | Tax expense |  | Pre-tax |     | Tax expense |  | Pre-tax |     | Tax expense
|                                                                                  |  | amount  |     | (credit)    |  | amount  |     | (credit)    |  | amount  |     | (credit)   
|                                                                                  |  |         |     |             |  |         |     |             |  |         |     |            
|Foreign currency translation adjustments                                          |  | $       | (21 | )           |  | $       |    |             |  | $       | (26 | )           |  | $ |   |   |  | $ | (60 | ) |  | $ |  | 
|Transfers of realized (gains) losses on derivative
instruments to earnings        |  |         | (25 | )           |  |         | 4   |             |  |         | 29  |             |  |   | (4 | ) |  |   |    |   |  |   |  | 
|Change in fair value of cash flow hedges                                          |  |         | 49  |             |  |         | (21 | )           |  |         |    |             |  |   |   |   |  |   |    |   |  |   |  | 
|FAS 133 transition adjustment (note 2)                                            |  |         |    |             |  |         |    |             |  |         | (4  | )           |  |   | 4  |   |  |   |    |   |  |   |  | 
|Additional minimum pension liability                                              |  |         | (2  | )           |  |         |    |             |  |         | (5  | )           |  |   |   |   |  |   |    |   |  |   |  | 
|Transfers of realized (gains) losses on
available-for-sale securities to earnings |  |         | 4   |             |  |         |    |             |  |         | (2  | )           |  |   |   |   |  |   | (7  | ) |  |   |  | 
|Unrealized losses on available-for-sale securities                                |  |         | (6  | )           |  |         |    |             |  |         | (4  | )           |  |   |   |   |  |   |    |   |  |   |  | 
|                                                                                  |  |         |     |             |  |         |     |             |  |         |     |             |  |   |    |   |  |   |     |   |  |   |   | 
|                                                                                  |  | $       | (1  | )           |  | $       | (17 | )           |  | $       | (12 | )           |  | $ |   |   |  | $ | (67 | ) |  | $ |  | 
|                                                                                  |  |         |     |             |  |         |     |             |  |         |     |             |  |   |    |   |  |   |     |   |  |   |   | 

Accumulated other comprehensive loss (OCI)

|                                                   |  |         |      |        |  |       |     |        |  |         |      |       |  |   |      |   |  |   |    |   |  |   |      |  
|-------------------------------------------------- |  | ------- | ---- | ------ |  | ----- | --- | ------ |  | ------- | ---- | ----- |  | - | ---- | - |  | - | -- | - |  | - | ---- | -
|At December 31                                     |  | 2002    |      | 2001  
|                                                   |  |         |      |       
|                                                   |  | Pre-tax |      | Tax    |  |       |     |        |  | Pre-tax |      | Tax   |  |   |      |  
|                                                   |  | amount  |      | credit |  | Total |     | amount |  | credit  |      | Total
|                                                   |  |         |      |        |  |       |     |        |  |         |      |      
|Foreign currency translation adjustments           |  | $       | (144 | )      |  | $     |    |        |  | $       | (144 | )     |  | $ | (123 | ) |  | $ |   |   |  | $ | (123 | )
|Derivative instruments                             |  |         | 49   |        |  |       | (17 | )      |  |         | 32   |       |  |   | 29   |   |  |   | (4 | ) |  |   | 25   |  
|Additional minimum pension liability               |  |         | (7   | )      |  |       |    |        |  |         | (7   | )     |  |   | (5   | ) |  |   |   |   |  |   | (5   | )
|Unrealized losses on available-for-sale securities |  |         | (6   | )      |  |       |    |        |  |         | (6   | )     |  |   | (4   | ) |  |   |   |   |  |   | (4   | )
|                                                   |  |         |      |        |  |       |     |        |  |         |      |       |  |   |      |   |  |   |    |   |  |   |      |  
|                                                   |  | $       | (108 | )      |  | $     | (17 | )      |  | $       | (125 | )     |  | $ | (103 | ) |  | $ | (4 | ) |  | $ | (107 | )
|                                                   |  |         |      |        |  |       |     |        |  |         |      |       |  |   |      |   |  |   |    |   |  |   |      |  

10 > SHORT-TERM INVESTMENTS

Available-for-sale securities

|                                    |  |       |    |        |  |       |   |        |  |   |     |  |  |   |   | 
|----------------------------------- |  | ----- | -- | ------ |  | ----- | - | ------ |  | - | --- |  |  | - | - | 
|At December 31                      |  | 2002  |    | 2001  
|                                    |  |       |    |       
|                                    |  | Fair  |    | Losses |  | Fair  |   | Losses
|                                    |  | value |    | in OCI |  | value |   | in OCI
|                                    |  |       |    |        |  |       |   |       
|Commercial paper and term deposits1 |  | $     |   |        |  | $     |  |        |  | $ | 159 |  |  | $ |  | 
|Fixed-income securities2            |  |       | 7  |        |  |       |  |        |  |   | 14  |  |  |   |  | 
|                                    |  |       |    |        |  |       |   |        |  |   |     |  |  |   |   | 
|Total debt securities               |  |       | 7  |        |  |       |  |        |  |   | 173 |  |  |   |  | 
|Equity securities2                  |  |       | 23 |        |  |       | 6 |        |  |   | 32  |  |  |   | 4 | 
|                                    |  |       |    |        |  |       |   |        |  |   |     |  |  |   |   | 
|                                    |  | $     | 30 |        |  | $     | 6 |        |  | $ | 205 |  |  | $ | 4 | 
|                                    |  |       |    |        |  |       |   |        |  |   |     |  |  |   |   | 



|1 |  | As part of our cash management program, we invest in
commercial paper and term deposits with initial maturities in
excess of three months, but less than one year.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| 
|2 |  | Under a deferred compensation plan for certain former
Homestake executives we hold a portfolio of marketable
fixed-income and equity securities. Short-term investments,
which are all classified as available-for-sale, are carried at
fair value with unrealized gains and losses, net of tax effects
recorded in OCI, a part of shareholders equity.
The fair value of investments is determined by quoted market prices.
We recognize in earnings all declines in fair
value judged to be other than temporary. During the three years
ended December 31, total proceeds from the sale of short-term
investments were: 2002  $223 million; 2001  $24 million;and 2000
 $26 million. For purposes of calculating realized gains and
losses, we use the average cost of securities sold.

|   |  |                                                    
|-- |  | ---------------------------------------------------
|74 |  | B A R R I C K   A N N U A L   R E P O R T   2 0 0 2





---



##### 



Realized gains and losses on investments

|                                |  |      |   |      |  |      |   |  |  |   |   | 
|------------------------------- |  | ---- | - | ---- |  | ---- | - |  |  | - | - | 
|For the years ended December 31 |  | 2002 |   | 2001 |  | 2000
|                                |  |      |   |      |  |     
|Gains                           |  | $    |  |      |  | $    | 2 |  |  | $ | 7 | 
|Losses                          |  | $    | 4 |      |  | $    |  |  |  | $ |  | 
|                                |  |      |   |      |  |      |   |  |  |   |   | 

11 > ACCOUNTS RECEIVABLE

|                           |  |      |    |      |  |   |    | 
|-------------------------- |  | ---- | -- | ---- |  | - | -- | 
|At December 31             |  | 2002 |    | 2001
|                           |  |      |    |     
|Amounts due from customers |  | $    | 30 |      |  | $ | 38 | 
|Taxes recoverable          |  |      | 12 |      |  |   | 11 | 
|Other                      |  |      | 30 |      |  |   | 11 | 
|                           |  |      |    |      |  |   |    | 
|                           |  | $    | 72 |      |  | $ | 60 | 
|                           |  |      |    |      |  |   |    | 

Amounts due from customers

We recognize revenue from the sale of gold and
by-products when the following conditions are met:



|>persuasive evidence of an arrangement exists;            
|----------------------------------------------------------
|                                                          
|>delivery has occurred under the terms of the
arrangement;
|                                                          
|>the price is fixed or determinable; and                  
|                                                          
|>collectibility is reasonably assured.                    

For gold bullion sold under forward sales contracts
or in the spot market, we recognize revenue on transfer
of title to the gold to counterparties.

Our Eskay Creek and Bulyanhulu mines produce ore
and concentrate containing both gold and silver. Our
concentrate sales contracts with third-party smelters
provide for final gold and silver pricing in a specified
future period based on spot market metals prices. We
record revenues under these contracts based on the
forward gold and silver prices at the time of shipment,
which is when transfer of legal title to concentrate
passes to the third-party smelters. The terms of the
contracts result in embedded derivatives, because of
the difference between the recorded one-month forward
price and the final settlement price. These embedded
derivatives are adjusted to fair value through non-hedge
derivative gains and losses in earnings each period until
the date of final gold and silver pricing.

At December 31, 2002, we had outstanding concentrate
sales contracts for 865,000 ounces of silver recorded
at an average price of $4.52 per ounce and 35,000 ounces
of gold recorded at an average price of $323 per ounce.

The fair value of the embedded
derivatives at December 31, 2002, was $1
million (positive), and is recorded on
the balance sheet in other derivative
assets.

Revenue from the sale of by-products such
as silver and copper is credited against
operating costs.

12 > INVENTORIES AND OTHER CURRENT
ASSETS

|                                      |  |      |     |      |  |   |     | 
|------------------------------------- |  | ---- | --- | ---- |  | - | --- | 
|At December 31                        |  | 2002 |     | 2001
|                                      |  |      |     |     
|Gold in process and ore in stockpiles |  | $    | 100 |      |  | $ | 134 | 
|Mine operating supplies               |  |      | 59  |      |  |   | 57  | 
|Derivative assets (note 23)           |  |      | 37  |      |  |   | 17  | 
|Prepaid expenses                      |  |      | 10  |      |  |   | 15  | 
|                                      |  |      |     |      |  |   |     | 
|                                      |  | $    | 206 |      |  | $ | 223 | 
|                                      |  |      |     |      |  |   |     | 

Gold in process and ore in stockpiles

We record gold in process, ore in
stockpiles and mine operating supplies
at the lower of average cost and net
realizable value. For gold in process
and ore in stockpiles, cost includes
materials and labor as well as an
allocation of amortization of property,
plant and equipment.

Gold in process and ore in stockpiles
excludes $61 million (2001  $46 million)
of stockpiled ore that we do not expect
to process in the next 12 months. This
amount is included in other assets. We
process ore in stockpiles under a life of
mine plan that is intended to optimize
use of our known mineral reserves,
present plant capacity and pit design.
Historically, the market price of gold
has not significantly affected the timing
of processing of ore in stockpiles.

Our Goldstrike property is the only one
that has significant stockpiled ore. The
stockpiles consist of two ore types: ore
that will require autoclaving, and ore
that will require roasting. Processing of
roaster ore commenced on start-up of the
roaster facility in 2000. We are now
processing ore from both the autoclave
and roaster stockpiles. We expect to
fully process the autoclave stockpile by
2009 and the roaster stockpile by 2016.

| |                                                     |   
| | --------------------------------------------------- | --
| | B A R R I C K   A N N U A L   R E P O R T   2 0 0 2 | 75





---



##### 



13 > PROPERTY, PLANT AND EQUIPMENT

|                                                |  |      |        |      |  |   |        |  
|----------------------------------------------- |  | ---- | ------ | ---- |  | - | ------ | -
|At December 31                                  |  | 2002 |        | 2001
|                                                |  |      |        |     
|Property acquisition and
mine development costs |  | $    | 4,233  |      |  | $ | 4,448  |  
|Buildings, plant and equipment                  |  |      | 2,812  |      |  |   | 2,824  |  
|                                                |  |      |        |      |  |   |        |  
|                                                |  |      | 7,045  |      |  |   | 7,272  |  
|Accumulated amortization                        |  |      | (3,723 | )    |  |   | (3,651 | )
|                                                |  |      |        |      |  |   |        |  
|                                                |  | $    | 3,322  |      |  | $ | 3,621  |  
|                                                |  |      |        |      |  |   |        |  

A    Property acquisition and
mine development costs

We capitalize payments for the acquisition of land and
mineral rights. After acquisition, a number of things
affect the recoverability of the cost of land and mineral
rights, and in particular the results of exploration
drilling. The length of time between the acquisition
of land and mineral rights and when we undertake
exploration work varies based on the prioritization
of our exploration projects and the size of our
exploration budget.

We capitalize mine development costs on our
properties after proven and probable reserves have
been found. Before finding proven and probable
reserves, costs are considered exploration costs,
which are expensed as incurred.

We start amortizing capitalized costs when production
begins. Amortization is calculated using the units-of-production method based on the estimated recoverable
ounces of gold in proven and probable reserves.

We capitalize financing costs, including interest, relating
to mine development costs while development or
construction activities at the properties are in progress.
Capitalization occurs without restriction to specific
borrowings. We stop capitalizing financing costs when
the asset or mine is substantially complete and ready
for its intended use.

B    Buildings, plant and equipment

We record buildings, plant and equipment at cost
and amortize them net of their residual value, using the
straight-line method over their estimated useful lives.
The longest estimated useful life for buildings and
mill equipment is 25 years and for mine equipment
15 years.

We expense repairs and maintenance
expenditures as incurred. We
capitalize major improvements and
replacements that increase productive
capacity or extend the useful life of
an asset, and amortize them over the
remaining estimated useful life of the
related asset.

C    Property evaluations

We review and test the carrying amounts
of our mineral properties and related
buildings, plant and equipment when
events or changes in circumstances
suggest that the carrying amount may not
be recoverable. If we have reason to
suspect an impairment may exist, we
prepare estimates of future net cash
flows that we expect to generate for the
related asset or group of assets. The
cash flow estimates are based on:



|>estimated recoverable ounces of gold
(considering proven and probable mineral
reserves);                            
|---------------------------------------------------------------------------------------------------------------------
|                                                                                                                     
|>estimated future
commodity prices (considering historical
and current prices, price trends and
related factors); and
|                                                                                                                     
|>expected
future operating costs, capital
expenditures and reclamation
expenditures.                                 

We record a reduction of the assets or
group of assets to their estimated fair
value as a charge to earnings, if the
estimated future net cash flows are less
than the carrying amount. We calculate
fair value by discounting the estimated
future net cash flows using a discount
factor. The discount factor is our
estimate of the risk-adjusted rate used
to determine the fair value of our
mining properties in a transaction
between willing buyers and sellers.

14 > OTHER ASSETS

|                                       |  |      |     |      |  |   |     | 
|-------------------------------------- |  | ---- | --- | ---- |  | - | --- | 
|At December 31                         |  | 2002 |     | 2001
|                                       |  |      |     |     
|Ore in stockpiles (note 12)            |  | $    | 61  |      |  | $ | 46  | 
|Taxes recoverable                      |  |      | 35  |      |  |   | 40  | 
|Derivative assets (note 23)            |  |      | 78  |      |  |   | 40  | 
|Deferred income tax assets (note 18)   |  |      | 45  |      |  |   |    | 
|Note receivable                        |  |      | 14  |      |  |   | 17  | 
|Restricted cash                        |  |      | 8   |      |  |   | 12  | 
|Debt issue costs                       |  |      | 11  |      |  |   | 11  | 
|Deferred stock compensation (note 20B) |  |      | 5   |      |  |   | 8   | 
|Prepaid pension asset (note 21)        |  |      | 7   |      |  |   | 5   | 
|Other                                  |  |      | 51  |      |  |   | 39  | 
|                                       |  |      |     |      |  |   |     | 
|                                       |  | $    | 315 |      |  | $ | 218 | 
|                                       |  |      |     |      |  |   |     | 

|                                                         
|---------------------------------------------------------
|76    B A R R I C K   A N N U A L   R E P O R T   2 0 0 2





---



##### 



15 > OTHER CURRENT LIABILITIES

|                                                              |  |      |     |      |  |   |     | 
|------------------------------------------------------------- |  | ---- | --- | ---- |  | - | --- | 
|At December 31                                                |  | 2002 |     | 2001
|                                                              |  |      |     |     
|Current part of reclamation and
closure obligations (note 17) |  | $    | 53  |      |  | $ | 80  | 
|Merger and related costs1                                     |  |      | 3   |      |  |   | 65  | 
|Litigation (note 22)                                          |  |      | 58  |      |  |   | 56  | 
|Derivative liabilities (note 23)                              |  |      | 28  |      |  |   | 13  | 
|Income taxes payable                                          |  |      | 52  |      |  |   | 43  | 
|Pension benefits (notes 17 and 21)                            |  |      | 9   |      |  |   | 1   | 
|Current part of long-term debt (note 16)                      |  |      | 20  |      |  |   | 9   | 
|Deferred revenue2                                             |  |      | 35  |      |  |   | 30  | 
|Other                                                         |  |      | 61  |      |  |   | 11  | 
|                                                              |  |      |     |      |  |   |     | 
|                                                              |  | $    | 319 |      |  | $ | 308 | 
|                                                              |  |      |     |      |  |   |     | 



|1 |  | In 2002, cash payments of merger
and related costs totaled $50
million. Other amounts totaling
$10 million were settled through
pension plan benefit
enhancements. Excess accruals
totaling $2 million have been
recorded in 2002 earnings.
|- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| 
|2 |  | Deferred revenue will be
recorded in earnings in: 2003 -
$17 million; 2004 - $7 million;
2005 - $4 million; 2010 - $7
million.                                                                                                             

16 > LONG-TERM DEBT

|                               |  |      |     |      |  |   |     |  
|------------------------------ |  | ---- | --- | ---- |  | - | --- | -
|At December 31                 |  | 2002 |     | 2001
|                               |  |      |     |     
|Debentures                     |  | $    | 504 |      |  | $ | 500 |  
|Project financing - Bulyanhulu |  |      | 194 |      |  |   | 200 |  
|Variable rate bonds            |  |      | 80  |      |  |   | 80  |  
|Capital leases                 |  |      | 3   |      |  |   | 22  |  
|                               |  |      |     |      |  |   |     |  
|                               |  |      | 781 |      |  |   | 802 |  
|Current part                   |  |      | (20 | )    |  |   | (9  | )
|                               |  |      |     |      |  |   |     |  
|                               |  | $    | 761 |      |  | $ | 793 |  
|                               |  |      |     |      |  |   |     |  

Interest expense

|                                |      |      |    |   |      |   |     |   |  |   |     |  
|------------------------------- | ---- | ---- | -- | - | ---- | - | --- | - |  | - | --- | -
|For the years ended December 31 | 2002 | 2001 |    |   | 2000
|                                |      |      |    |   |      |  
|Interest incurred               |      | $    | 59 |   |      | $ | 67  |   |  | $ | 70  |  
|Less: capitalized               |      |      | (2 | ) |      |   | (42 | ) |  |   | (44 | )
|                                |      |      |    |   |      |   |     |   |  |   |     |  
|Interest expense                |      | $    | 57 |   |      | $ | 25  |   |  | $ | 26  |  
|                                |      |      |    |   |      |   |     |   |  |   |     |  

A    Debentures

On April 22, 1997, we issued $500 million of redeemable,
non-convertible debentures. The debentures bear interest
at 7.5% per annum, payable semi-annually, and mature
on May 1, 2007. In 2002, we entered into interest-rate
swap contracts as a fair value hedge of our interest
rate risk exposure on $250 million of the debentures,
effectively converting them to floating-rate debt
instruments (note 23). Under the swaps, we receive fixed-rate interest receipts at 7.5% in exchange for floating-rate
interest payments of LIBOR plus a credit spread of 4.0%,
which resulted in an effective rate of 5.7%.

B    Project financing - Bulyanhulu

One of our wholly-owned subsidiaries,
Kahama Mining Corporation Ltd. in
Tanzania, has a limited recourse
amortizing loan for $194 million. We
guaranteed the loan until completion,
which occurred in March 2003. After
completion, the loan became
non-recourse. The loan is insured for
political risks equally by branches of
the Canadian government and the World
Bank. The interest rate, inclusive of
political risk insurance premiums, is
LIBOR plus 2.6% before completion, and
increases after completion to about
LIBOR plus 3.6%. The effective interest
rate for 2002, including amortization
of debt-issue costs and political risk
insurance, was 7.2% (2001 - 7.3%, 2000
- 9.2%). The effective interest rate
includes payments made under a
receive-floating, pay-fixed
interest-rate swap which matches the
loan principal over the term to
repayment and through this we have
fixed the rate for the term of the debt
at 7%.

Scheduled repayments for each of the
next five years are: 2003 - $20
million, 2004 - $24 million, 2005 - $31
million, 2006 - $34 million, 2007 - $34
million, 2008 and thereafter - $51
million.

C    Variable rate bonds

Certain of our wholly-owned subsidiaries have issued
variable rate, tax-exempt bonds of $17 million (due
2004), $25 million (due 2029) and $38 million (due
2032) for a total of $80 million. We pay interest monthly
on the bonds based on variable short-term, tax-exempt
obligation rates. The average interest rate for 2002 was
1.4% (2001 - 1.9%). No principal repayments are due
until cancellation, redemption or maturity.

D    Credit facilities

We have a credit and guarantee agreement with a group
of banks (the Lenders), which requires the Lenders to
make available to us a credit facility of up to $1 billion or
the equivalent amount in Canadian currency. We
renewed the Credit Agreement on April 29, 2002 for
another five-year term. The Credit Agreement, which
is unsecured, matures in April 2007 and has an interest
rate of LIBOR plus 0.27% to 0.35% when used, and an
annual fee of 0.08%. We have not drawn any amounts
under the Credit Agreement.

| |                                                     |   
| | --------------------------------------------------- | --
| | B A R R I C K   A N N U A L   R E P O R T   2 0 0 2 | 77





---



##### 



17 > OTHER LONG-TERM OBLIGATIONS

|                                 |  |      |     |      |  |   |     | 
|-------------------------------- |  | ---- | --- | ---- |  | - | --- | 
|At December 31                   |  | 2002 |     | 2001
|                                 |  |      |     |     
|Reclamation and closure costs    |  | $    | 249 |      |  | $ | 267 | 
|Pension benefits (note 21)       |  |      | 55  |      |  |   | 62  | 
|Other post-retirement benefits   |  |      | 28  |      |  |   | 32  | 
|Derivative liabilities (note 23) |  |      | 58  |      |  |   | 60  | 
|Restricted stock units (note 20) |  |      | 7   |      |  |   | 8   | 
|Other                            |  |      | 25  |      |  |   | 14  | 
|                                 |  |      |     |      |  |   |     | 
|                                 |  | $    | 422 |      |  | $ | 443 | 
|                                 |  |      |     |      |  |   |     | 

A    Reclamation and closure costs

We accrue estimates of future reclamation
and closure costs at active mines over
the life of the mines as revenue is
recognized. Each period we expense an
amount calculated using the
units-of-production method based on the
latest estimates of future reclamation
and closure costs and recoverable ounces
of gold contained in proven and probable
reserves. After closure we record changes
in estimates of reclamation and closure
costs in earnings at the time of
revision. Our accounting policy for
reclamation and closure costs will change
on adoption of FAS 143 in 2003 (refer to
note 2). At December 31, 2002, accrued
costs at inactive mines totaled $169
million (2001 - $250 million).

Estimates of reclamation and closure
costs reflect:



|>work that is
required under applicable laws and
regulations;        
|---------------------------------------------------------------------
|                                                                     
|>obligations under
existing permits; and                             
|                                                                     
|>where
applicable, government mandated
assumptions and methodologies.

We estimate that future reclamation and closure
costs under present environmental regulations are
$461 million. The major parts of this $461 million
estimate are for: tailing and heap leach pad closure/rehabilitation - $83 million; demolition of buildings/mine facilities - $121 million; ongoing water treatment -
$67 million; ongoing monitoring and care and maintenance -
 $129 million; and other costs - $61 million.
At December 31, 2002, we had accrued a total
of $302 million (2001 - $347 million), including the
current part of $53 million.

B    Other post-retirement benefits

We provide post-retirement medical, dental, and life
insurance benefits to certain employees. We use the
corridor approach in the accounting for post-retirement
benefits, under which all actuarial gains and losses
resulting from variances between actual results and
economic estimates or actuarial assumptions are
deferred. We amortize the deferred amounts when the
net gains or losses exceed 10% of the accumulated
post-retirement benefit obligation at the beginning
of the year. The amortization period is the average
remaining life expectancy of participants. For 2002,
we recorded a benefit expense of $nil (2001 - $2 million
credit, 2000 - $1 million expense).

We have assumed a health care cost trend of 7% in
2002, 7.5% in 2001 and 8% in 2000, decreasing
ratability to 5% in 2006 and thereafter. The assumed
health care cost trend had a minimal effect on the
amounts reported. A one percentage point change in
the assumed health care cost trend rate at December 31,
2002 would have increased or decreased the post-retirement benefit
 obligation by $2 million and would
have had no significant effect on the benefit expense
for 2002.

|                                                         
|---------------------------------------------------------
|78    B A R R I C K   A N N U A L   R E P O R T   2 0 0 2





---



##### 



18 > DEFERRED INCOME TAXES

Net deferred income tax liabilities

|                                                |                                              |      |      |      |   |   |      |      |  
|----------------------------------------------- | -------------------------------------------- | ---- | ---- | ---- | - | - | ---- | ---- | -
|At December 31                                  |                                              | 2002 |      | 2001
|                                                |                                              |      |      |     
|Assets                                          |                                              |      |      |      |   |   |      |     
|                                                | Operating loss carryforwards                 |      | $    | 389  |   |   | $    | 312  |  
|                                                | Reclamation and closure costs                |      |      | 82   |   |   |      | 81   |  
|                                                | Property, plant and equipment                |      |      | 93   |   |   |      | 32   |  
|                                                | Post-retirement benefit plan obligations     |      |      | 46   |   |   |      | 48   |  
|                                                | Alternative minimum tax
credit carryforwards |      |      | 110  |   |   |      | 111  |  
|                                                | Other                                        |      |      | 43   |   |   |      | 61   |  
|                                                |                                              |      |      |      |   |   |      |      |  
|                                                | Gross deferred tax assets                    |      |      | 763  |   |   |      | 645  |  
|                                                | Valuation allowances                         |      |      | (476 | ) |   |      | (433 | )
|                                                |                                              |      |      |      |   |   |      |      |  
|Net assets                                      |                                              |      | 287  |      |   |   | 212  |     
|Liabilities                                     |                                              |      |      |      |   |   |      |     
|                                                | Property, plant and equipment                |      |      | (487 | ) |   |      | (444 | )
|                                                | Other                                        |      |      | (16  | ) |   |      | (59  | )
|                                                |                                              |      |      |      |   |   |      |      |  
|                                                |                                              | $    | (216 | )    |   | $ | (291 | )   
|                                                |                                              |      |      |      |   |   |      |      |  
|Net deferred income tax liabilities consist of: |                                              |      |      |      |   |   |      |     
|                                                | Non-current assets (note 14)                 |      |      | 45   |   |   |      |     |  
|                                                | Non-current liabilities                      |      |      | (261 | ) |   |      | (291 | )
|                                                |                                              |      |      |      |   |   |      |      |  
|                                                |                                              | $    | (216 | )    |   | $ | (291 | )   
|                                                |                                              |      |      |      |   |   |      |      |  

A    Recognition and Measurement

We recognize deferred income tax assets and liabilities
for the future tax consequences of temporary
differences between the carrying amounts of assets and
liabilities in our balance sheet and their tax bases. We
measure deferred income tax assets and liabilities using
enacted rates that apply to the years when we expect to
recover or settle the temporary differences. Our income
tax expense or recovery includes the effects of changes
in our deferred income tax assets and liabilities.
We reduce deferred income tax assets by a valuation
allowance if we decide it is more likely than not that
some or all of the assets will not be realized.

We measure and recognize deferred income tax assets
and liabilities based on: our interpretation of relevant
tax legislation; our tax planning strategies; estimates of
the tax bases of individual assets and liabilities; and the
deductibility of expenditures for income tax purposes.
We will recognize the effects of changes in our assessment of
 these estimates and factors when they occur.

We have not recorded deferred income taxes relating to
undistributed earnings of foreign subsidiaries that are
indefinitely invested. Undistributed earnings amounted
to about $1,251 million at December 31,
2002, and $1,499 million at December 31,
2001. If the undistributed earnings of
those foreign subsidiaries were not
indefinitely invested, a deferred income
tax liability of $63 million at December
31, 2002, and $75 million at December 31,
2001, would be recorded.

Operating loss carryforwards amount to
$1,456 million, of which $1,032 million
do not expire and $424 million expire at
various times over the next 20 years.
Alternative minimum tax credit
carryforwards amount to $110 million
and do not expire.

Our income tax returns for the major
jurisdictions where we operate have been
fully examined through the following
years: Canada - 1997, United States -
1998 and Peru - 2000. Other than the
matter described in note 22C relating to
interest and penalties associated with a
Peruvian tax assessment, we are not aware
of any tax matters outstanding in any
country in which we operate that could
potentially have a material adverse
effect on our financial position or
results of operations.

B    Valuation allowances

Because we operate in multiple tax
jurisdictions, we consider the need for a
valuation allowance on a
country-by-country basis, taking into
account the effects of local tax law.
When a valuation allowance is not
recorded, we believe that there is
sufficient positive evidence to support
this conclusion.

When facts or circumstances change, we
record an adjustment to a valuation
allowance to reflect the economic
effects of the change. The main factors
that affect the amount of a valuation
allowance are:



|>expected levels of
future taxable income;                                               
|-----------------------------------------------------------------------------------------
|                                                                                         
|>opportunities to implement tax plans
that affect whether tax assets can be
realized; and
|                                                                                         
|>the nature and
amount of taxable temporary
differences.                                 

Levels of taxable income are affected
by, among other things, prevailing gold
prices; cash operating costs; changes
in proven and probable gold reserves;
and changes in interest rates and
foreign currency exchange rates. It is
reasonably possible that circumstances
could occur resulting in a material
change in the valuation allowances.

| |                                                     |   
| | --------------------------------------------------- | --
| | B A R R I C K   A N N U A L   R E P O R T   2 0 0 2 | 79





---



##### 



19 > CAPITAL STOCK

A    Authorized capital

Our authorized capital stock includes an
unlimited number of common shares,
9,764,929 First preferred shares, Series
A (issued nil); 9,047,619 Series B
(issued nil); 1 Series C special voting
share (issued 1); and 14,726,854 Second
preferred shares Series A (issued nil).

B    Homestake Canada Inc. (HCI)
Exchangeable Shares

In connection with a 1998 acquisition,
HCI issued 11.1 million HCI exchangeable
shares. Each HCI exchangeable share is
exchangeable for 0.53 of a Barrick
common share at any time at the option
of the holder and has essentially the
same voting, dividend (payable in
Canadian dollars), and other rights as
0.53 of a Barrick common share. At
December 31, 2002, 1.6 million (2001 - 3
million) HCI exchangeable shares were
outstanding, which are equivalent to 0.8
million Barrick common shares (2001 -
1.6 million common shares). The
equivalent common share amounts are
reflected in the number of common shares
outstanding.

At any time on or after December 31,
2008, or when fewer than 1.4 million HCI
exchangeable shares are outstanding, we
have the right to require the exchange
of each outstanding HCI exchangeable
share for 0.53 of a Barrick common
share.

Summarized financial information for HCI

|                                |  |      |     |      |  |      |      |   |  |   |     |  
|------------------------------- |  | ---- | --- | ---- |  | ---- | ---- | - |  | - | --- | -
|For the years ended December 31 |  | 2002 |     | 2001 |  | 2000
|                                |  |      |     |      |  |     
|Total revenues and other income |  | $    | 203 |      |  | $    | 175  |   |  | $ | 203 |  
|Less: costs and expenses        |  |      | 191 |      |  |      | 281  |   |  |   | 233 |  
|                                |  |      |     |      |  |      |      |   |  |   |     |  
|Income (loss) before taxes      |  | $    | 12  |      |  | $    | (106 | ) |  | $ | (30 | )
|                                |  |      |     |      |  |      |      |   |  |   |     |  
|Net loss                        |  | $    | (1  | )    |  | $    | (84  | ) |  | $ | (30 | )
|                                |  |      |     |      |  |      |      |   |  |   |     |  

|                                     |                             |      |     |      |   |   |     |      |  
|------------------------------------ | --------------------------- | ---- | --- | ---- | - | - | --- | ---- | -
|At December 31                       |                             | 2002 |     | 2001
|                                     |                             |      |     |     
|Assets                               |                             |      |     |      |   |   |     |     
|                                     | Current assets              |      | $   | 91   |   |   | $   | 43   |  
|                                     | Non-current assets          |      |     | 236  |   |   |     | 345  |  
|                                     |                             |      |     |      |   |   |     |      |  
|Total assets                         |                             | $    | 327 |      |   | $ | 388 |     
|                                     |                             |      |     |      |   |   |     |      |  
|Liabilities and Shareholders equity |                             |      |     |      |   |   |     |     
|                                     | Other current liabilities   |      |     | 75   |   |   |     | 76   |  
|                                     | Notes payable               |      |     | 407  |   |   |     | 416  |  
|                                     | Other long-term liabilities |      |     | 18   |   |   |     | 12   |  
|                                     | Deferred income taxes       |      |     | 122  |   |   |     | 121  |  
|                                     | Shareholders equity        |      |     | (295 | ) |   |     | (237 | )
|                                     |                             |      |     |      |   |   |     |      |  
|                                     |                             | $    | 327 |      |   | $ | 388 |     
|                                     |                             |      |     |      |   |   |     |      |  

C    Dividends

In 2002, we declared and paid dividends
in US dollars totaling $0.22 per share
(2001 - $0.22 per share, 2000 - $0.22
per share).

20 > EMPLOYEE STOCK-BASED COMPENSATION

A    Common stock options

At December 31, 2002, 22 million common
stock options were outstanding, expiring
at various dates to December 2, 2012. The
exercise price of the options is set at
our closing share price on the day before
the grant date. They vest over four years
at a rate of one quarter each year,
beginning in the year after granting, and
are exercisable over 10 years. At
December 31, 2002, 5 million (2001 - 9
million, 2000 - 6 million) common shares,
in addition to those currently
outstanding, were available for granting
options.

Besides the common stock options in the
table on page 81, we are obliged to issue
about 0.5 million common shares (2001 -
0.7 million common shares) in connection
with outstanding stock options assumed as
part of the Sutton acquisition. The
options have an average exercise price of
C$19.68 (2001 - C$19.34) and an average
remaining term of three years (2001 -
four years).

|                                                         
|---------------------------------------------------------
|80    B A R R I C K   A N N U A L   R E P O R T   2 0 0 2





---



##### 



Stock option activity(shares in millions)

|               |                      |  |                 |    |               |  |                 |       |               |  |                 |    |               |  |   |       |  |  |    |    |   |  |   |       | 
|-------------- | -------------------- |  | --------------- | -- | ------------- |  | --------------- | ----- | ------------- |  | --------------- | -- | ------------- |  | - | ----- |  |  | -- | -- | - |  | - | ----- | 
|               |                      |  | 2002            |    | 2001          |  | 2000           
|               |                      |  |                 |    |               |  |                
|               |                      |  | Shares (number) |    | Average price |  | Shares (number) |       | Average price |  | Shares (number) |    | Average price
|               |                      |  |                 |    |               |  |                 |       |               |  |                 |    |              
|C$ options     |                      |  |                 |    |               |  |                 |       |               |  |                 |    |               |  |   |       |  |  |    |    |   |  |   |      
|At January 1   |                      |  | 19              |    |               |  |                 |       |               |  | 22              |    |               |  |   |       |  |  | 21 |    |   |  |   |      
|               | Granted              |  |                 | 6  |               |  | $               | 24.71 |               |  |                 | 1  |               |  | $ | 24.32 |  |  |    | 5  |   |  | $ | 24.24 | 
|               | Exercised            |  |                 | (4 | )             |  | $               | 24.79 |               |  |                 |   |               |  | $ | 22.77 |  |  |    |   |   |  | $ | 22.95 | 
|               | Cancelled or expired |  |                 | (2 | )             |  | $               | 33.99 |               |  |                 | (4 | )             |  | $ | 29.66 |  |  |    | (4 | ) |  | $ | 32.77 | 
|               |                      |  |                 |    |               |  |                 |       |               |  |                 |    |               |  |   |       |  |  |    |    |   |  |   |       | 
|At December 31 |                      |  | 19              |    |               |  |                 |       |               |  | 19              |    |               |  |   |       |  |  | 22 |    |   |  |   |      
|               |                      |  |                 |    |               |  |                 |       |               |  |                 |    |               |  |   |       |  |  |    |    |   |  |   |       | 
|US$ options    |                      |  |                 |    |               |  |                 |       |               |  |                 |    |               |  |   |       |  |  |    |    |   |  |   |      
|At January 1   |                      |  | 6               |    |               |  |                 |       |               |  | 4               |    |               |  |   |       |  |  | 3  |    |   |  |   |      
|               | Granted              |  |                 |   |               |  |                 |      |               |  |                 | 2  |               |  | $ | 9.03  |  |  |    | 1  |   |  | $ | 13.72 | 
|               | Exercised            |  |                 | (2 | )             |  | $               | 11.99 |               |  |                 |   |               |  | $ | 13.44 |  |  |    |   |   |  |   |      | 
|               | Cancelled or expired |  |                 | (1 | )             |  | $               | 25.10 |               |  |                 |   |               |  | $ | 26.10 |  |  |    |   |   |  | $ | 29.45 | 
|               |                      |  |                 |    |               |  |                 |       |               |  |                 |    |               |  |   |       |  |  |    |    |   |  |   |       | 
|At December 31 |                      |  | 3               |    |               |  |                 |       |               |  | 6               |    |               |  |   |       |  |  | 4  |    |   |  |   |      
|               |                      |  |                 |    |               |  |                 |       |               |  |                 |    |               |  |   |       |  |  |    |    |   |  |   |       | 

Stock options outstanding(shares in millions)

|                         |                 |                 |             |               |  |                      |   |                 |             |               |   |   |  |  |   |   |  |  |   |       | 
|------------------------ | --------------- | --------------- | ----------- | ------------- |  | -------------------- | - | --------------- | ----------- | ------------- | - | - |  |  | - | - |  |  | - | ----- | 
|                         |                 |                 | Outstanding |               |  |                      |   |                 | Exercisable
|                         |                 |                 |             |               |  |                      |   |                 |            
|Range of exercise prices |                 | Shares (number) |             | Average price |  | Average life (years) |   | Shares (number) |             | Average price
|                         |                 |                 |             |               |  |                      |   |                 |             |              
|C$ options               |                 |                 |             |               |  |                      |   |                 |             |               |   |   |  |  |   |   |  |  |   |      
|                         | $22.55 - $31.05 |                 |             | 17            |  |                      | $ | 25.43           |             |               |   | 8 |  |  |   | 7 |  |  | $ | 26.73 | 
|                         | $31.25 - $44.25 |                 |             | 2             |  |                      | $ | 39.46           |             |               |   | 4 |  |  |   | 2 |  |  | $ | 39.84 | 
|                         |                 |                 |             |               |  |                      |   |                 |             |               |   |   |  |  |   |   |  |  |   |       | 
|                         |                 |                 | 19          |               |  |                      |   |                 |             |               | 8 |   |  |  | 9 |   |  |  |   |      
|                         |                 |                 |             |               |  |                      |   |                 |             |               |   |   |  |  |   |   |  |  |   |       | 
|US$ options              |                 |                 |             |               |  |                      |   |                 |             |               |   |   |  |  |   |   |  |  |   |      
|                         | $8.96 - $17.68  |                 |             | 2             |  |                      | $ | 12.24           |             |               |   | 5 |  |  |   | 1 |  |  | $ | 13.62 | 
|                         | $17.75 - $40.66 |                 |             | 1             |  |                      | $ | 25.22           |             |               |   | 2 |  |  |   | 1 |  |  | $ | 25.47 | 
|                         |                 |                 |             |               |  |                      |   |                 |             |               |   |   |  |  |   |   |  |  |   |       | 
|                         |                 |                 | 3           |               |  |                      |   |                 |             |               | 4 |   |  |  | 2 |   |  |  |   |      
|                         |                 |                 |             |               |  |                      |   |                 |             |               |   |   |  |  |   |   |  |  |   |       | 

Under APB 25, we recognize compensation
cost for stock options in earnings based
on the excess, if any, of the quoted
market price of the stock at the grant
date of the award over the option
exercise price. Generally, the exercise
price for stock options granted to
employees equals the fair market value
of our common stock at the date of
grant, resulting in no compensation
cost.

FASB Statement No. 123 (Accounting for
Stock-Based Compensation) (FAS 123)
encourages, but does not require,
companies to record compensation cost for
stock-based employee compensation plans
based on the fair value of options
granted. We have elected to continue to
account for stock-based compensation
using the intrinsic value method
prescribed in Accounting Principles Board
Opinion No. 25 (Accounting for Stock
Issued to Employees) (APB 25) and its
related interpretations, and to provide
disclosures of the pro forma effects of
adoption had we recorded compensation
expense under the fair value method.

Option value information

|                                          |                              |   |      |      |      |   |      |      |   |   |        |       |  
|----------------------------------------- | ---------------------------- | - | ---- | ---- | ---- | - | ---- | ---- | - | - | ------ | ----- | -
|For the years ended December 31           |                              |   |      |      |      |   |      |      |   |   |        |      
|(per share and option amounts in dollars) |                              |   |      |      |      |   |      |      |   |   |        |      
|                                          |                              |   |      |      |      |   |      |      |   |   |        |      
|                                          |                              |   | 2002 |      | 2001 |   | 2000
|                                          |                              |   |      |      |      |   |     
|Fair value per option                     |                              | $ | 6.40 |      |      | $ | 5.10 |      |   | $ | 5.90   |      
|Valuation assumptions:                    |                              |   |      |      |      |   |      |      |   |   |        |      
|                                          | Expected option term (years) |   |      | 6    |      |   |      | 10   |   |   |        | 6     |  
|                                          | Expected volatility          |   |      | 40   | %    |   |      | 30   | % |   |        | 30    | %
|                                          | Expected dividend yield      |   |      | 1.4  | %    |   |      | 1.4  | % |   |        | 1.4   | %
|                                          | Risk-free interest rate      |   |      | 5.0  | %    |   |      | 5.5  | % |   |        | 6.0   | %
|                                          |                              |   |      |      |      |   |      |      |   |   |        |      
|Pro forma effects                         |                              |   |      |      |      |   |      |      |   |   |        |      
|Net income (loss), as reported            |                              | $ | 193  |      |      | $ | 96   |      |   | $ | (1,189 | )    
|Stock-option expense                      |                              |   | (21  | )    |      |   | (31  | )    |   |   | (30    | )    
|                                          |                              |   |      |      |      |   |      |      |   |   |        |      
|Pro forma net income (loss)               |                              | $ | 172  |      |      | $ | 65   |      |   | $ | (1,219 | )    
|                                          |                              |   |      |      |      |   |      |      |   |   |        |      
|Net income (loss) per share:              |                              |   |      |      |      |   |      |      |   |   |        |      
|                                          | As
reported1                 |   | $    | 0.36 |      |   | $    | 0.18 |   |   | $      | (2.22 | )
|                                          | Pro
forma1                   |   | $    | 0.32 |      |   | $    | 0.12 |   |   | $      | (2.28 | )
|                                          |                              |   |      |      |      |   |      |      |   |   |        |      



|1 |  | Basic and diluted.
|- |  | ------------------

|
|
|





---



##### 



B    Restricted stock units

In 2001, we put in place a restricted
stock unit incentive plan (RSU Plan).
Under the RSU Plan, a participant is
granted a number of RSUs, where each unit
has a value equal to one Barrick common
share at the time of grant. Each RSU,
which vests and will be paid out on the
third anniversary of the date of grant,
has a value equivalent to the market
price of a Barrick common share. RSUs are
recorded at their fair value on the grant
date, with a corresponding amount
recorded as deferred compensation that is
amortized on a straight-line basis over
the vesting period. Changes in the fair
market value of the units during the
vesting period are recorded, with a
corresponding adjustment to the carrying
amount of deferred compensation.
Compensation expense for the year ended
December 31, 2002 was $3 million (2001 -
$nil). At December 31, 2002, the weighted
average contractual life was two years.
At December 31, 2002, the fair value of
outstanding RSUs was $7 million and is
included in other long-term obligations.

RSU activity

|                             |           |  |                |     |                   |   |       |       | 
|---------------------------- | --------- |  | -------------- | --- | ----------------- | - | ----- | ----- | 
|                             |           |  | RSUs           |     | Fair value per   
|                             |           |  | (in thousands) |     | unit (in dollars)
|                             |           |  |                |     |                  
|Balance at December 31, 2000 |           |  |               |     |                   | $ |      |      
|                             | Granted   |  |                | 495 |                   |   |       | 15.49 | 
|                             |           |  |                |     |                   |   |       |      
|Balance at December 31, 2001 |           |  | 495            |     |                   |   | 15.95 |      
|                             | Cancelled |  |                | (30 | )                 |   |       | 19.74 | 
|                             |           |  |                |     |                   |   |       |      
|Balance at December 31, 2002 |           |  | 465            |     |                   | $ | 15.41 |      
|                             |           |  |                |     |                   |   |       |      

21 > PENSION PLANS

A    Defined benefit pension plans

We have various qualified defined
benefit pension plans that cover certain
of our United States employees and
provide benefits based on employees years of service. Our policy for
these plans is to fund, at a minimum,
the amounts necessary on an actuarial
basis to provide enough assets to meet
the benefits payable to plan members
under the Employee Retirement Income
Security Act of 1974. Independent
trustees administer assets of the plans,
which are invested mainly in
fixed-income securities and equity
securities.

As well as the qualified plans, we have
nonqualified defined benefit pension
plans covering certain employees and a
director of the Company. An irrevocable
trust (rabbi trust) was set up to fund
these plans. The diversified assets held
in this trust, which include cash of $1
million and short-term investments of $30
million are recorded in our consolidated
balance sheet and accounted for under our
accounting policies for such assets. At
December 31, 2002, the fair value of
assets held in the trust was $31 million
(2001 - $47 million).

Our pension expense includes the cost
of employee benefits earned in the
year, interest expense on the
accrued benefit obligation, the
expected return on the market value of
plan assets, and amortization of
deferred actuarial gains and losses.

Actuarial gains and losses arise when
the actual return on plan assets for a
period differs from the expected return
on plan assets for that period, and when
actual experience causes the expected
and actuarial accrued benefit
obligations to differ at the end of the
year. We amortize actuarial gains and
losses over the average remaining life
expectancy of participants.

|                                                         
|---------------------------------------------------------
|82    B A R R I C K   A N N U A L   R E P O R T   2 0 0 2





---



##### 



Pension expense

|                                    |  |      |     |      |  |      |     |   |  |   |     |  
|----------------------------------- |  | ---- | --- | ---- |  | ---- | --- | - |  | - | --- | -
|For the years ended December 31     |  | 2002 |     | 2001 |  | 2000
|                                    |  |      |     |      |  |     
|Expected return on plan assets      |  | $    | (17 | )    |  | $    | (21 | ) |  | $ | (21 | )
|Service cost for benefits earned    |  |      | 3   |      |  |      | 4   |   |  |   | 3   |  
|Interest cost on benefit obligation |  |      | 16  |      |  |      | 16  |   |  |   | 17  |  
|Prior service cost                  |  |      |    |      |  |      | 1   |   |  |   | 1   |  
|Actuarial gains                     |  |      | (1  | )    |  |      | (2  | ) |  |   | (1  | )
|Special termination charges1        |  |      |    |      |  |      | 39  |   |  |   | 10  |  
|Effect of curtailments/settlements  |  |      | 1   |      |  |      | (4  | ) |  |   | 2   |  
|                                    |  |      |     |      |  |      |     |   |  |   |     |  
|                                    |  | $    | 2   |      |  | $    | 33  |   |  | $ | 11  |  
|                                    |  |      |     |      |  |      |     |   |  |   |     |  



|1 |  | In 2001, the planned closure of certain mine sites caused some terminated
employees at the sites to receive extra
pension entitlements. As well, certain
employees with change of control
clauses in their employment agreements
became entitled to enhanced pension
benefits on the closing of the merger.
We recorded a charge of $39 million
included in merger and related costs to
reflect the impact of these events. In
2000, we recorded a charge of $10
million for special termination
benefits arising due to the closure of
the Homestake mine in provisions for
mining assets and other unusual
charges.
|- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

B    Defined contribution pension plans

Certain employees take part in defined
contribution employee benefit plans. We
also have a retirement plan for certain
officers of the Company, under which we
contribute 15% of the officers annual
salary and bonus. Our share of
contributions to these plans was $12
million in 2002, $12 million in 2001 and
$11 million in 2000.

C    Defined benefit pension
plan actuarial
information

|                                          |                                          |   |      |     |      |   |     |     |  
|----------------------------------------- | ---------------------------------------- | - | ---- | --- | ---- | - | --- | --- | -
|                                          |                                          |   | 2002 |     | 2001
|                                          |                                          |   |      |     |     
|Accumulated benefit obligation (ABO)      |                                          |   |      |     |      |   |     |    
|Balance at January 1                      |                                          | $ | 279  |     |      | $ | 238 |    
|                                          | Service cost for benefits earned         |   |      | 3   |      |   |     | 4   |  
|                                          | Interest cost on benefit obligation      |   |      | 16  |      |   |     | 16  |  
|                                          | Plan amendments and special terminations |   |      |    |      |   |     | 39  |  
|                                          | Actuarial (gains) losses                 |   |      | (1  | )    |   |     | 17  |  
|                                          | Benefits paid                            |   |      | (70 | )    |   |     | (24 | )
|                                          | Curtailments                             |   |      |    |      |   |     | (11 | )
|                                          |                                          |   |      |     |      |   |     |    
|Balance at December 31                    |                                          | $ | 227  |     |      | $ | 279 |    
|                                          |                                          |   |      |     |      |   |     |    
|Fair value of plan assets                 |                                          |   |      |     |      |   |     |    
|Balance at January 1                      |                                          | $ | 235  |     |      | $ | 255 |    
|                                          | Actual return on plan assets             |   |      | (2  | )    |   |     | 3   |  
|                                          | Company contributions                    |   |      | 7   |      |   |     | 1   |  
|                                          | Benefits paid                            |   |      | (70 | )    |   |     | (24 | )
|                                          |                                          |   |      |     |      |   |     |    
|Balance at December 31                    |                                          | $ | 170  |     |      | $ | 235 |    
|                                          |                                          |   |      |     |      |   |     |    
|Funded status                             |                                          | $ | (57  | )   |      | $ | (44 | )  
|Unrecognized net actuarial (gains) losses |                                          |   | 9    |     |      |   | (9  | )  
|                                          |                                          |   |      |     |      |   |     |    
|Net liability recognized                  |                                          | $ | (48  | )   |      | $ | (53 | )  
|                                          |                                          |   |      |     |      |   |     |    

Pension plans where ABO exceeds
the fair value of plan assets

|                             |  |      |     |      |  |   |     | 
|---------------------------- |  | ---- | --- | ---- |  | - | --- | 
|At December 31               |  | 2002 |     | 2001
|                             |  |      |     |     
|Projected benefit obligation |  | $    | 193 |      |  | $ | 238 | 
|ABO                          |  | $    | 193 |      |  | $ | 236 | 
|Fair value of plan assets    |  | $    | 132 |      |  | $ | 184 | 
|                             |  |      |     |      |  |   |     | 

Benefit asset (liability)

|                                             |  |      |     |      |  |   |     |  
|-------------------------------------------- |  | ---- | --- | ---- |  | - | --- | -
|At December 31                               |  | 2002 |     | 2001
|                                             |  |      |     |     
|Prepaid pension asset                        |  | $    | 7   |      |  | $ | 5   |  
|Accrued benefit plan liability - current     |  |      | (7  | )    |  |   | (1  | )
|Accrued
benefit plan liability - non-current |  |      | (48 | )    |  |   | (57 | )
|Additional minimum liability (note 9)        |  |      | (7  | )    |  |   | (5  | )
|                                             |  |      |     |      |  |   |     |  
|                                             |  | $    | (55 | )    |  | $ | (58 | )
|                                             |  |      |     |      |  |   |     |  

Actuarial assumptions

|                                |  |      |      |      |  |      |      |   |  |  |      |  
|------------------------------- |  | ---- | ---- | ---- |  | ---- | ---- | - |  |  | ---- | -
|For the years ended December 31 |  | 2002 |      | 2001 |  | 2000
|                                |  |      |      |      |  |     
|Discount rate                   |  |      | 6.50 | %    |  |      | 6.75 | % |  |  | 7.25 | %
|Expected return on plan assets  |  |      | 8.50 | %    |  |      | 8.50 | % |  |  | 8.50 | %
|Compensation increases          |  |      | 5.00 | %    |  |      | 5.00 | % |  |  | 5.00 | %
|                                |  |      |      |      |  |      |      |   |  |  |      |  

Sensitivity analysis of actuarial assumptions1

|                               |  |               |    |                    |  |   |   | 
|------------------------------ |  | ------------- | -- | ------------------ |  | - | - | 
|                               |  | Effect on ABO |    | Effect on earnings
|                               |  |               |    |                   
|Expected return on plan assets |  | $             |   |                    |  | $ | 1 | 
|Discount rate                  |  | $             | 18 |                    |  | $ | 3 | 
|                               |  |               |    |                    |  |   |   | 



|1 |  | Effect of a one-percent change
|- |  | ------------------------------

22 > COMMITMENTS AND CONTINGENCIES

A    Contingencies

Certain conditions may exist as of the date the financial
statements are issued, which may result in a loss to the
Company but which will only be resolved when one or
more future events occur or fail to occur. Management
and, where appropriate, legal counsel, assess such
contingent liabilities, which inherently involves an
exercise of judgement.

In assessing loss contingencies related to legal
proceedings that are pending against us or unasserted
claims that may result in such proceedings, the
Company and its legal counsel evaluate the perceived
merits of any legal proceedings or unasserted claims as
well as the perceived merits of the amount of relief
sought or expected to be sought.

| |                                                     |   
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---



##### 



If the assessment of a contingency suggests that it is
probable that a material loss has been incurred and the
amount of the liability can be estimated, then the
estimated liability is accrued in the financial statements.
If the assessment suggests that a potentially material
loss contingency is not probable but is reasonably
possible, or is probable but cannot be estimated, then
the nature of the contingent loss, together with an
estimate of the range of possible loss, if determinable,
are disclosed. Loss contingencies considered remote are
generally not disclosed unless they involve guarantees,
in which case we disclose the nature of the guarantee.

B    Environmental

Our mining and exploration activities are subject to
various federal, provincial and state laws and regulations
governing the protection of the environment. These
laws and regulations are continually changing and
generally becoming more restrictive. We conduct our
operations so as to protect public health and the
environment, and we believe that our operations are
materially in compliance with all applicable laws and
regulations. We have made, and expect to make in the
future, expenditures to meet such laws and regulations.

The Comprehensive Environmental Response,
Compensation and Liability Act imposes heavy liabilities
on persons who discharge hazardous substances.
The Environmental Protection Agency publishes a
National Priorities List (NPL) of known or threatened
releases of such substances. Homestakes former
uranium millsite near Grants, New Mexico is listed on
the NPL.

C    Litigation and claims

Inmet litigation

In October 1997, Homestake Canada Inc. (HCI), a
wholly-owned subsidiary of Barrick, entered into an
agreement with Inmet Mining Corporation (Inmet) to
purchase the Troilus mine in Quebec for $110 million
plus working capital. In December 1997, HCI terminated
the agreement after deciding that, on the basis of due
diligence studies, conditions to closing the arrangement
would not be satisfied.

On February 23, 1998, Inmet filed suit against HCI in
the British Columbia Supreme Court, disputing the
termination of the agreement and alleging that HCI
had breached the agreement. On January 15, 2002,
the Supreme Court of British Columbia released its
decision in the matter and found in favor of Inmet and
against HCI. Specifically, the Court held that Inmet
should be awarded equitable damages in the amount
of C$88.2 (US$59) million, which was accrued at
December 31, 2001. The Court did not award Inmet
pre-judgement interest. Inmet requested the Court
to re-open the trial to let Inmet make submissions on
its claim for pre-judgement interest from the date of
the breach by HCI. The request to re-open was denied
by the Court on May 17, 2002.

On February 7, 2002, HCI filed a Notice of Appeal of
the decision with the British Columbia Court of Appeal.
Inmet filed a Cross-Appeal of the decision regarding
pre-judgement interest. A letter of credit of about
C$95 million was posted on August 20, 2002 by HCI
with the British Columbia Court of Appeal, pending a
decision on the appeal.

Bre-X Minerals

On April 30, 1998, we were added as a defendant in a
class action lawsuit initiated against Bre-X Minerals Ltd.,
certain of its directors and officers or former directors
and officers and others in the United States District
Court for the Eastern District of Texas, Texarkana
Division. The class action alleges, among other things, former
that statements made by us in connection with our
efforts to secure the right to develop and operate the
Busang gold deposit in East Kalimantan, Indonesia were
materially false and misleading and omitted to state
material facts relating to the preliminary due diligence
investigation undertaken by us in late 1996.

On July 13, 1999, the Court dismissed the claims against
us and several other defendants on the grounds that
the plaintiffs had failed to state a claim under United
States securities laws. On August 19, 1999, the plaintiffs
filed an amended complaint restating their claims
against us and certain other defendants and on June 14,
2000, filed a further amended complaint, the Fourth
Amended Complaint.

|   |                                                    
|-- | ---------------------------------------------------
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---



##### 



On March 31, 2001, the Court granted in part and
denied in part our Motion to Dismiss the Fourth
Amended Complaint. As a result, we remain a defendant
in the case. We believe that the remaining claims
against us are without merit. We filed our formal
answer to the Fourth Amended Complaint on April 27,
2001, denying all relevant allegations of the
plaintiffs against us. Discovery in the case has been
stayed by the Court pending the Courts decision on
whether or not to certify the case as a class action.
The amount of potential loss, if any, which we may
incur arising out of the plaintiffs claims is not
presently determinable.

Blanchard complaint

On January 7, 2003, we were served with a
Complaint for Injunctive Relief by
Blanchard and Company, Inc.
(Blanchard), and Herbert Davies
(Davies). The complaint, which is
pending in the US District Court for the
Eastern District of Louisiana, also names
J.P. Morgan Chase & Company (J.P.
Morgan) as the defendant, along with an
unspecified number of additional
defendants to be named later. The
complaint alleges that we and bullion
banks with which we entered into spot
deferred contracts have manipulated the
price of gold, in violation of US
antitrust laws and the Louisiana Unfair
Trade Practices and Consumer Protection
Law. Blanchard alleges that it has been
injured as a seller of gold due to
reduced interest in gold as an
investment. Davies, a customer of
Blanchard, alleges injury due to the
reduced value of his gold investments.
The complaint does not seek damages, but
seeks an injunction terminating certain
of our trading agreements with J.P.
Morgan and other bullion banks. We intend
to defend the action vigorously.

Peruvian tax assessment

On December 27, 2002, one of our Peruvian
subsidiaries received an income tax
assessment of $41 million, excluding
interest and penalties, from the Peruvian
tax authority SUNAT. The tax assessment
relates to a recently completed tax audit
of our Pierina Mine for the 1999-2000
fiscal years. The assessment mainly
relates to the revaluation of the Pierina
mining concession and associated tax
basis. Under the valuation proposed by
SUNAT, the tax basis of Pierina assets
would change
from what we have previously assumed with
a resulting increase in current and
deferred income taxes. While we believe
the tax assessment is incorrect and we
will appeal the decision, the full life
of mine effect on our current and
deferred income tax liabilities of $141
million is recorded at December 31, 2002,
as well as other payments of about $21
million due for periods through 2002.

We intend to
pursue all available administrative and
judicial appeals. If we are successful on
appeal and our original asset valuation
is confirmed as the appropriate tax basis
of assets, we would benefit from a $141
million reduction in tax liabilities
recorded at December 31, 2002. The effect
of this contingent gain, if any, will be
recorded in the period the contingency is
resolved.

Under Peruvian law, we are not
required to make payment pending the
outcome of the appeal process, which
routinely takes several years.

We have not provided for $51 million of potential
interest and penalties assessed in the audit. Even
if the tax assessment is upheld, we believe that we
will prevail on the interest and penalties part,
because the assessment runs counter to applicable
law and previous Peruvian tax audits. The potential
amount of interest and penalties will increase over
time while we contest the tax assessment. A
liability for interest and penalties will only be
recorded should it become probable that SUNATs position on
interest and penalties will be
upheld, or if we exhaust our appeals.

Other

From time to time, we are involved in
various claims, legal proceedings and
complaints arising in the ordinary course
of business. We are also subject to
reassessment for income and mining taxes
for certain years. We do not believe that
adverse decisions in any pending or
threatened proceedings related to any
potential tax assessments or other
matters, or any amount which we may be
required to pay by reason thereof, will
have a material adverse effect on our
financial condition or future results of
operations.

| |                                                     |   
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---



##### 



D    Commitments

We have entered into various
commitments in the ordinary course of
business, including commitments to
perform assessment work and other
obligations necessary to maintain or
protect our interests in mining
properties, financing and other
obligations to joint ventures and
partners under venture and partnership
agreements, and commitments under
federal and state/provincial
environmental, health and safety
permits.

23 > DERIVATIVE INSTRUMENTS

A    Use of derivative instruments

We use derivative financial instruments
to reduce or eliminate the inherent risks
of certain identifiable transactions and
balances that occur in the normal course
of our business. The inherent risks in
these transactions and balances arise
from changes in commodity prices (gold
and silver), interest rates and foreign
currency exchange rates. The purpose of
our derivative program is to ensure that
disadvantageous changes in the values of
cash flows from these transactions and
balances are offset by changes in the
values of the derivatives. We do not hold
derivatives for the purpose of
speculation; our derivative program is
designed to enable us to plan our
operations on the basis of secure
assumptions that will not be jeopardized
by future movements of gold and silver
prices, interest rates and currency
exchange rates.

In the normal course of our business,
the main types of derivatives we hold
and/or issue are:

Spot deferred and variable-price sales
contracts: These contracts provide for
the sale of future gold production in
fixed quantities with delivery dates at
our discretion over a period of up to 15
years.

Interest rate swaps: These
instruments are used to counteract the
volatility of variable short-term
interest rates by substituting fixed
interest rates over longer terms on cash
and short-term investments.

Foreign currency contracts: These
instruments are used for the cash flows
at our operating mines from forecasted
expenditures denominated in Canadian and
Australian dollars to insulate them from
currency fluctuations.

Gold lease rate
swap contracts: These contracts are used
to manage gold lease rate exposure.

In the most significant of these
programs - the spot deferred and
variable-price sales contracts - the
contracts set a price for future gold
and silver sales with significant
flexibility to capture gold price
upside in periods of higher prices.
This effect is achieved as a result of
our strong balance sheet, large
reserves and diversified operations.

We mainly use over-the-counter (OTC)
derivative contracts. These privately
negotiated agreements, which provide
superior terms compared to
exchange-traded
contracts, allow us to obtain favorable
credit, tenor and flexibility terms. We
do not enter into derivative instruments
which we would consider leveraged.

B    Accounting for derivative
instruments and hedging
activities

Under US GAAP rules, companies are
required to include on their balance
sheet the fair value of derivative
instruments, which are defined under FAS
133. This definition excludes certain
derivative instruments from its scope,
including instruments that meet the
definition of normal sales contracts,
and whose obligations are met by physical
delivery of gold or silver, as set out in
paragraph 10(b). Our spot deferred and
variable price sales contracts meet the
terms of this paragraph, so FAS 133 does
not apply to them. We apply our normal
revenue recognition principles to our
normal sales contracts, which results in
recognition of proceeds from the
contracts as revenue at the date of
physical delivery.

|   |                                                    
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##### 



All other derivatives are recognized on
our balance sheet at their fair value as
either an asset or a liability. On the
date we enter into a derivative
contract, we designate the derivative as
either:



|>a fair value hedge of a
recognized asset or liability;                                                                                
|---------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                       
|>a
cash flow hedge of either a forecasted
transaction or the variability of cash
flows associated with a recognized asset
or liability;
|                                                                                                                                       
|>a foreign currency
cash flow hedge of forecasted
transactions; or                                                                     
|                                                                                                                                       
|>an instrument that
is held for non-hedging purposes.                                                                                  

Fair-value hedges of recognized assets or
liabilities: we record in earnings any
changes in the fair value of the
derivatives as they occur, along with
changes in the fair value of the hedged
asset or liability.

Derivatives that
qualify as cash flow hedges: we record
changes in the fair value of the
derivative in Other Comprehensive Income
(OCI) until earnings are affected by the
forecasted transaction.

Interest-rate
swaps designated as hedges of future
interest receipts arising on our cash and
short-term investments: gains and losses
on the derivatives are recorded in OCI
until the related interest receipts are
recorded in earnings, at which time the
gains and losses are transferred to
interest income.

Foreign-currency
contracts for Canadian or Australian
capital and operating expenditures at our
operating mines: gains and losses on the
derivatives are recorded in OCI until
these costs are recorded in earnings, at
which time the gains and losses are
transferred to amortization or operating
costs.

Non-hedge derivatives: Changes in the
fair value are recorded in earnings as
they occur.

All cash flows relating to derivative
instruments are included under
operating cash flows.

We formally document all relationships
between derivative instruments and the
items they are hedging, as well as the
risk-management goals and strategy for
entering into hedge transactions. This
documentation includes linking all
derivatives designated as fair-value,
cash flow, or foreign-currency hedges to
either specific assets and liabilities
in the balance sheet, specific firm
commitments or specific forecasted
transactions.

For these documented relationships, we
formally assess (both at the start of the
hedge and on an ongoing basis) whether
the derivatives used in hedging
transactions are highly effective in
offsetting changes in the fair value or
cash flows of hedged items, and whether
those derivatives are expected to remain
highly effective in the future. If it is
clear that a derivative is not highly
effective as a hedge, we stop hedge
accounting prospectively.

Other circumstances under which we stop
hedge accounting prospectively include:



|>a derivative expires or is sold,
terminated, or exercised;             
|------------------------------------------------------------------------
|                                                                        
|>it is no
longer probable that the forecasted
transaction will occur; or
|                                                                        
|>if we
decide to remove the designation as a
hedge from a derivative.   

If it is clear that a forecasted
transaction will not occur by the
originally specified time, or within a
further two-month period, gains and
losses accumulated in OCI are recognized
at once in earnings.

In all situations in which hedge
accounting stops and a derivative
remains outstanding, future changes in
its fair value are recognized in
earnings as they occur.

| |                                                     |   
| | --------------------------------------------------- | --
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---



##### 



C  Gold and silver contracts outstanding as at December 31, 2002

|                                               |                                            |      |        |        |  |      |        |       |  |      |        |       |  |       |       |       |  |   |       |       |  |   |       |       |  |   |        |        | 
|---------------------------------------------- | ------------------------------------------ | ---- | ------ | ------ |  | ---- | ------ | ----- |  | ---- | ------ | ----- |  | ----- | ----- | ----- |  | - | ----- | ----- |  | - | ----- | ----- |  | - | ------ | ------ | 
|Maturity/Scheduled for delivery in             |                                            | 2003 |        | 2004   |  | 2005 |        | 2006  |  | 2007 |        | 2008+ |  | Total
|                                               |                                            |      |        |        |  |      |        |       |  |      |        |       |  |      
|Gold contracts                                 |                                            |      |        |        |  |      |        |       |  |      |        |       |  |       |       |       |  |   |       |       |  |   |       |       |  |   |        |       
|Spot deferred contracts                        |                                            |      |        |        |  |      |        |       |  |      |        |       |  |       |       |       |  |   |       |       |  |   |       |       |  |   |        |       
|                                               | Ounces (thousands)                         |      |        | 2,800  |  |      |        | 1,350 |  |      |        | 1,550 |  |       |       | 1,540 |  |   |       | 1,500 |  |   |       | 7,200 |  |   |        | 15,940 | 
|                                               | Average price per ounce                    |      | $      | 340    |  |      | $      | 345   |  |      | $      | 335   |  |       | $     | 338   |  |   | $     | 340   |  |   | $     | 343   |  |   | $      | 341    | 
|Variable price gold sales and
option contracts |                                            |      |        |        |  |      |        |       |  |      |        |       |  |       |       |       |  |   |       |       |  |   |       |       |  |   |        |       
|With caps                                    |                                            |      |        |        |  |      |        |       |  |      |        |       |  |       |       |       |  |   |       |       |  |   |       |       |  |   |        |       
|                                               | Ounces (thousands)                         |      |        | 250    |  |      |        | 300   |  |      |        | 300   |  |       |       | 250   |  |   |       |      |  |   |       | 900   |  |   |        | 2,000  | 
|                                               | Average price per ounce
at cap expiry date |      | $      | 344    |  |      | $      | 310   |  |      | $      | 317   |  |       | $     | 332   |  |   |       |      |  |   | $     | 369   |  |   | $      | 345    | 
|With caps and floors                       |                                            |      |        |        |  |      |        |       |  |      |        |       |  |       |       |       |  |   |       |       |  |   |       |       |  |   |        |       
|                                               | Ounces (thousands)                         |      |        | 150    |  |      |        |      |  |      |        |      |  |       |       |      |  |   |       |      |  |   |       |      |  |   |        | 150    | 
|                                               | Cap price per ounce                        |      | $      | 310    |  |      |        |      |  |      |        |      |  |       |       |      |  |   |       |      |  |   |       |      |  |   | $      | 310    | 
|                                               | Floor price per ounce                      |      | $      | 280    |  |      |        |      |  |      |        |      |  |       |       |      |  |   |       |      |  |   |       |      |  |   | $      | 280    | 
|                                               |                                            |      |        |        |  |      |        |       |  |      |        |       |  |       |       |       |  |   |       |       |  |   |       |       |  |   |        |        | 
|Total gold ounces (thousands)                  |                                            |      | 3,200  |        |  |      | 1,650  |       |  |      | 1,850  |       |  |       | 1,790 |       |  |   | 1,500 |       |  |   | 8,100 |       |  |   | 18,090 |       
|Average price per ounce                        |                                            | $    | 339    |        |  | $    | 339    |       |  | $    | 332    |       |  | $     | 337   |       |  | $ | 340   |       |  | $ | 346   |       |  | $ | 341    |       
|                                               |                                            |      |        |        |  |      |        |       |  |      |        |       |  |       |       |       |  |   |       |       |  |   |       |       |  |   |        |        | 
|Silver contracts                               |                                            |      |        |        |  |      |        |       |  |      |        |       |  |       |       |       |  |   |       |       |  |   |       |       |  |   |        |       
|                                               | Spot deferred contracts                    |      |        |        |  |      |        |       |  |      |        |       |  |       |       |       |  |   |       |       |  |   |       |       |  |   |        |        | 
|                                               | Ounces (thousands)                         |      |        | 11,000 |  |      |        | 9,000 |  |      |        | 9,000 |  |       |       | 3,300 |  |   |       | 3,000 |  |   |       |      |  |   |        | 35,300 | 
|                                               | Average price per ounce                    |      | $      | 4.95   |  |      | $      | 5.14  |  |      | $      | 5.14  |  |       | $     | 5.19  |  |   | $     | 5.19  |  |   |       |      |  |   | $      | 5.09   | 
|Written silver call options                    |                                            |      |        |        |  |      |        |       |  |      |        |       |  |       |       |       |  |   |       |       |  |   |       |       |  |   |        |       
|                                               | Ounces (thousands)                         |      |        | 3,750  |  |      |        | 5,000 |  |      |        | 2,000 |  |       |       |      |  |   |       |      |  |   |       |      |  |   |        | 10,750 | 
|                                               | Average exercise price per ounce           |      | $      | 5.27   |  |      | $      | 5.28  |  |      | $      | 5.00  |  |       |       |      |  |   |       |      |  |   |       |      |  |   | $      | 5.22   | 
|                                               |                                            |      |        |        |  |      |        |       |  |      |        |       |  |       |       |       |  |   |       |       |  |   |       |       |  |   |        |        | 
|Total silver ounces (thousands)                |                                            |      | 14,750 |        |  |      | 14,000 |       |  |      | 11,000 |       |  |       | 3,300 |       |  |   | 3,000 |       |  |   |      |       |  |   | 46,050 |       
|Average price per ounce                        |                                            | $    | 5.03   |        |  | $    | 5.19   |       |  | $    | 5.11   |       |  | $     | 5.19  |       |  | $ | 5.19  |       |  |   |      |       |  | $ | 5.12   |       
|                                               |                                            |      |        |        |  |      |        |       |  |      |        |       |  |       |       |       |  |   |       |       |  |   |       |       |  |   |        |        | 

We also have off-take contracts which
allow (but do not commit) us to sell
1.7 million ounces of gold spread over
10 years, at then prevailing spot
prices.

The largest single counterparty as
of December 31, 2002 made up 13% of
outstanding gold sales commitments.

|   |                                                    
|-- | ---------------------------------------------------
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##### 



Spot deferred gold sales contracts

We have entered into spot deferred gold
sales contracts, with various
counterparties, that fix selling prices
at interim delivery dates for future gold
production, and which act as an economic
hedge against possible price fluctuations
in gold. The contracts have a final
delivery date of up to 15 years from the
start date, but we have the right to set
a delivery date for any time during this
period. At the time an interim delivery
date is rescheduled, the contract price
is adjusted based on the difference
between the prevailing forward gold
market price and the original contract
price.

The average price of the spot deferred
gold sales contracts in the table on
page 88 reflects fixed prices at interim
delivery dates and expected future price
assumptions for periods where expected
delivery dates differ from interim
delivery dates. The large majority of
contracts are fixed through 2006. The
expected prices incorporate an average
gold lease rate assumption of 1.5% and
assumptions of US dollar interest rates
consistent with market quotations for
such rates. Variations between the gold
lease rate and interest rate assumptions
and the actual gold lease rates and
interest rates will affect the final
realized selling prices. Gold lease rate
exposure is accounted for separately
from our spot deferred gold sales
contracts, and the economic impact flows
through our earnings each quarter as
part of non-hedge derivative gains
(losses). This gold lease rate exposure
is 6.4 million ounces spread from 2004
to 2012, mainly for contracts with
expected delivery dates beyond 2006.

Variable-price gold sales contracts

Variable price gold sales contracts are
contracts to deliver a specified quantity
of gold on a future date determined by
us. The contracts have a final delivery
date of up to 15 years from the start
date, but we have the right to set a
delivery date at any time during this
15-year period. All of the variable-price
gold sales contracts have expected
delivery dates beyond 2007. The contract
price equals the gold spot price on the
interim delivery date subject to a
specified maximum (cap) based on market
conditions in the years shown in the
table on page 88, plus a fixed premium
payable to us. The contract price will be
adjusted in the same manner as price
adjustments to spot deferred contracts
for the period from these interim
delivery dates to the expected delivery
date beyond 2007. Certain of these
contracts also have a specified minimum
(floor) price.

Spot deferred silver sales contracts and written silver call options

Spot deferred silver sales contracts have
the same delivery terms and pricing
mechanism as spot deferred gold sales
contracts. A group of these contracts
totaling 14.3 million ounces of silver
are accounted for as normal
sales contracts, as we physically deliver
silver production into the contracts. For
a separate group of contracts totaling 21
million ounces, we have elected hedge
accounting treatment, and we designated
these contracts as cash flow hedges
beginning on November 8, 2002.

Changes in fair value of our written
silver call options are recorded in
earnings as they occur.

|                                                    |   
|--------------------------------------------------- | --
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---



##### 



D    Other derivative instruments outstanding as at December 31, 2002

|                                    |                            |      |     |      |  |      |     |      |   |      |    |       |   |       |     |      |   |   |     |     |   |   |      |     |   |   |     |      |  
|----------------------------------- | -------------------------- | ---- | --- | ---- |  | ---- | --- | ---- | - | ---- | -- | ----- | - | ----- | --- | ---- | - | - | --- | --- | - | - | ---- | --- | - | - | --- | ---- | -
|Maturity                            |                            | 2003 |     | 2004 |  | 2005 |     | 2006 |   | 2007 |    | 2008+ |   | Total
|                                    |                            |      |     |      |  |      |     |      |   |      |    |       |   |      
|Interest rate contracts             |                            |      |     |      |  |      |     |      |   |      |    |       |   |       |     |      |   |   |     |     |   |   |      |     |   |   |     |     
|Receive fixed - swaps and swaptions |                            |      |     |      |  |      |     |      |   |      |    |       |   |       |     |      |   |   |     |     |   |   |      |     |   |   |     |     
|                                    | Notional amount (millions) |      |     |     |  |      | $   | 250  |   |      | $  | 75    |   |       | $   | 100  |   |   | $   | 475 |   |   |      |    |   |   | $   | 900  |  
|                                    | Fixed rate (%)             |      |     |     |  |      |     | 3.5  | % |      |    | 2.7   | % |       |     | 3.0  | % |   |     | 5.6 | % |   |      |    |   |   |     | 4.5  | %
|Pay fixed - swaps and swaptions     |                            |      |     |      |  |      |     |      |   |      |    |       |   |       |     |      |   |   |     |     |   |   |      |     |   |   |     |     
|                                    | Notional amount(millions)  |      |     |     |  |      |     |     |   |      |    |      |   |       |     |     |   |   |     |    |   |   | $    | 344 |   |   | $   | 344  |  
|                                    | Fixed rate (%)             |      |     |     |  |      |     |     |   |      |    |      |   |       |     |     |   |   |     |    |   |   |      | 5.6 | % |   |     | 5.6  | %
|                                    |                            |      |     |      |  |      |     |      |   |      |    |       |   |       |     |      |   |   |     |     |   |   |      |     |   |   |     |      |  
|Net notional position               |                            |      |    |      |  | $    | 250 |      |   | $    | 75 |       |   | $     | 100 |      |   | $ | 475 |     |   | $ | (344 | )   |   | $ | 556 |     
|                                    |                            |      |     |      |  |      |     |      |   |      |    |       |   |       |     |      |   |   |     |     |   |   |      |     |   |   |     |      |  
|Total return swaps                  |                            |      |     |      |  |      |     |      |   |      |    |       |   |       |     |      |   |   |     |     |   |   |      |     |   |   |     |     
|                                    | Notional amount (millions) |      |     |     |  |      |     |     |   |      | $  | 17    |   |       |     |     |   |   |     |    |   |   |      |    |   |   | $   | 17   |  
|                                    |                            |      |     |      |  |      |     |      |   |      |    |       |   |       |     |      |   |   |     |     |   |   |      |     |   |   |     |      |  
|Foreign currency contracts          |                            |      |     |      |  |      |     |      |   |      |    |       |   |       |     |      |   |   |     |     |   |   |      |     |   |   |     |     
|Canadian dollar forwards            |                            |      |     |      |  |      |     |      |   |      |    |       |   |       |     |      |   |   |     |     |   |   |      |     |   |   |     |     
|                                    | C$ (millions)              |      | $   | 101  |  |      | $   | 118  |   |      | $  | 91    |   |       |     |     |   |   |     |    |   |   |      |    |   |   | $   | 310  |  
|                                    | Average price (US¢)        |      |     | 0.65 |  |      |     | 0.64 |   |      |    | 0.63  |   |       |     |     |   |   |     |    |   |   |      |    |   |   |     | 0.64 |  
|Canadian dollar min-max contracts   |                            |      |     |      |  |      |     |      |   |      |    |       |   |       |     |      |   |   |     |     |   |   |      |     |   |   |     |     
|                                    | C$ (millions)              |      | $   | 173  |  |      |     |     |   |      |    |      |   |       |     |     |   |   |     |    |   |   |      |    |   |   | $   | 173  |  
|                                    | Average cap price (US¢)    |      |     | 0.65 |  |      |     |     |   |      |    |      |   |       |     |     |   |   |     |    |   |   |      |    |   |   |     | 0.65 |  
|                                    | Average floor price (US¢)  |      |     | 0.63 |  |      |     |     |   |      |    |      |   |       |     |     |   |   |     |    |   |   |      |    |   |   |     | 0.63 |  
|Australian dollar forwards          |                            |      |     |      |  |      |     |      |   |      |    |       |   |       |     |      |   |   |     |     |   |   |      |     |   |   |     |     
|                                    | A$ (millions)              |      | $   | 175  |  |      | $   | 311  |   |      | $  | 283   |   |       | $   | 10   |   |   |     |    |   |   |      |    |   |   | $   | 779  |  
|                                    | Average price (US¢)        |      |     | 0.51 |  |      |     | 0.51 |   |      |    | 0.51  |   |       |     | 0.52 |   |   |     |    |   |   |      |    |   |   |     | 0.51 |  
|Australian dollar min-max contracts |                            |      |     |      |  |      |     |      |   |      |    |       |   |       |     |      |   |   |     |     |   |   |      |     |   |   |     |     
|                                    | A$ (millions)              |      | $   | 339  |  |      | $   | 10   |   |      | $  | 10    |   |       | $   | 10   |   |   |     |    |   |   |      |    |   |   | $   | 369  |  
|                                    | Average cap price (US¢)    |      |     | 0.55 |  |      |     | 0.52 |   |      |    | 0.52  |   |       |     | 0.52 |   |   |     |    |   |   |      |    |   |   |     | 0.55 |  
|                                    | Average floor price (US¢)  |      |     | 0.52 |  |      |     | 0.51 |   |      |    | 0.51  |   |       |     | 0.51 |   |   |     |    |   |   |      |    |   |   |     | 0.52 |  
|                                    |                            |      |     |      |  |      |     |      |   |      |    |       |   |       |     |      |   |   |     |     |   |   |      |     |   |   |     |      |  
|Fuel contracts                      |                            |      |     |      |  |      |     |      |   |      |    |       |   |       |     |      |   |   |     |     |   |   |      |     |   |   |     |     
|Barrels WTI (thousands)             |                            |      | 240 |      |  |      |    |      |   |      |   |       |   |       |    |      |   |   |    |     |   |   |     |     |   |   | 240 |     
|Cap                                 |                            | $    | 30  |      |  |      |    |      |   |      |   |       |   |       |    |      |   |   |    |     |   |   |     |     |   | $ | 30  |     
|Floor                               |                            | $    | 18  |      |  |      |    |      |   |      |   |       |   |       |    |      |   |   |    |     |   |   |     |     |   | $ | 18  |     
|                                    |                            |      |     |      |  |      |     |      |   |      |    |       |   |       |     |      |   |   |     |     |   |   |      |     |   |   |     |      |  

Our interest rate and foreign currency
contracts are recorded at fair value
on our balance sheet, with changes in
fair value recorded in earnings as
they occur, with the following
exceptions:



|> |  | we have elected cash flow
hedge accounting treatment for
Canadian dollar foreign currency
contracts with a total notional amount
of C$457 million, and Australian
dollar foreign currency contracts with
a total notional amount of A$1,065
million;                                                                                                                                                                            
|- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| 
|> |  | we have elected receive fixed
interest rate swaps with a total
notional amount of $650 million to be
accounted for as cash flow hedges of
expected future interest receipts
arising on our cash and short-term
investments (note 28); and we have
elected receive fixed interest rate
swaps with a total notional amount of
$250 million to be accounted for as a
fair value hedge of fixed-rate
debentures (refer to note 16A).
| 
|> |  | we have elected an amortizing pay fixed
interest rate swap with a total notional
amount of $194 million as at December
31, 2002 to be accounted for as a cash
flow hedge of future
interest payments relating to the
project financing for Bulyanhulu (refer
to note 16B).                                                                                                                                                      

|   |                                                    
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##### 



E    Unrealized fair value of derivative instruments
(excluding normal sales contracts)

|                                                |                                     |   |      |    |      |   |     |    | 
|----------------------------------------------- | ----------------------------------- | - | ---- | -- | ---- | - | --- | -- | 
|                                                |                                     |   | 2002 |    | 2001
|                                                |                                     |   |      |    |     
|At January 1                                    |                                     | $ | (16  | )  |      | $ | (42 | ) 
|Derivative instruments entered into or settled  |                                     |   | (2   | )  |      |   | (7  | ) 
|Change in fair value of derivative instruments: |                                     |   |      |    |      |   |     |   
|                                                | Non-hedge derivative gains (losses) |   |      | (6 | )    |   |     | 33 | 
|                                                | Cash flow hedges                    |   |      | 49 |      |   |     |   | 
|                                                | Fair value hedges                   |   |      | 4  |      |   |     |   | 
|                                                |                                     |   |      |    |      |   |     |   
|At December 31                                  |                                     | $ | 29   |    |      | $ | (16 | ) 
|                                                |                                     |   |      |    |      |   |     |   

The fair values of recorded derivative
related assets and liabilities reflect
the netting of the fair values of
individual derivative instruments, and
amounts due to/from counterparties that
arise from derivative instruments, when
the conditions of FIN No. 39, Offsetting
of Amounts Related to Certain Contracts,
have been met. Amounts receivable from
counterparties that have been offset
against derivative liabilities totaled
$16 million at December 31, 2002.

F    Change in fair value of cash flow hedge contracts

|                               |  |           |     |           |  |           |    |          |  |   |    |    |  |   |     |  
|------------------------------ |  | --------- | --- | --------- |  | --------- | -- | -------- |  | - | -- | -- |  | - | --- | -
|                               |  |           |     |           |  | Foreign   |    | Interest |  |   |    |   
|                               |  | Commodity |     | currency  |  | rate      |    |          |  |  
|                               |  | contracts |     | contracts |  | contracts |    | Total   
|                               |  |           |     |           |  |           |    |         
|At January 1, 2001             |  | $         | (4  | )         |  |           |   |          |  |   |   |    |  | $ | (4  | )
|Losses transferred
to earnings |  |           | 29  | 1         |  |           |   |          |  |   |   |    |  |   | 29  |  
|                               |  |           |     |           |  |           |    |          |  |   |    |    |  |   |     |  
|At December 31, 2001           |  | $         | 25  |           |  | $         |   |          |  | $ |   |    |  | $ | 25  |  
|Change in fair value           |  |           | (4  | )         |  |           | 33 |          |  |   | 20 |    |  |   | 49  |  
|Gains transferred
to earnings  |  |           | (12 | )1        |  |           | (7 | )2       |  |   | (6 | )3 |  |   | (25 | )
|                               |  |           |     |           |  |           |    |          |  |   |    |    |  |   |     |  
|At December 31, 2002           |  | $         | 9   |           |  | $         | 26 |          |  | $ | 14 |    |  | $ | 49  |  
|                               |  |           |     |           |  |           |    |          |  |   |    |    |  |   |     |  



|1 | Included under revenues and by-product credits
|- | ----------------------------------------------
| 
|2 | Included under operating expenses             
| 
|3 | Included under interest income                

In the next twelve months, we expect to
transfer gains of $27 million from OCI to
earnings. For the year ended December 31,
2002, the amount of hedge ineffectiveness
recorded and recognized in non-hedge
derivative gains (losses) was a loss of
$1 million.

G    Non-hedge derivative gains (losses)

|                                  |  |      |     |      |  |   |     |  
|--------------------------------- |  | ---- | --- | ---- |  | - | --- | -
|For the years ended December 31   |  | 2002 |     | 2001
|                                  |  |      |     |     
|Commodity contracts               |  | $    | (2  | )    |  | $ | 57  |  
|Currency contracts                |  |      | 8   |      |  |   | (15 | )
|Interest and lease rate contracts |  |      | (12 | )    |  |   | (9  | )
|                                  |  |      |     |      |  |   |     |  
|                                  |  | $    | (6  | )    |  | $ | 33  |  
|                                  |  |      |     |      |  |   |     |  

H    Credit and market risks

By using derivative instruments, we
expose ourselves to credit and market
risk. Market risk is the risk that the
value of a financial instrument might be
adversely affected by a change in
commodity prices, interest rates, gold
lease rates, or currency exchange rates.
We manage the market risk associated
with commodity prices, interest rate,
gold lease rate, and foreign currency
contracts by establishing and monitoring
parameters that limit the types and
degree of market risk that may be
undertaken.

| |                                                     |   
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##### 



Credit risk is the risk that a
counterparty might fail to fulfill its
performance obligations under the terms
of a derivative contract, or in the case
of total return swaps, the risk that a
deterioration in credit quality of the
underlying reference asset, or a credit
default event, will give rise to a loss
under the derivative instrument. If a
counterparty fails to fulfill its
performance obligations under a
derivative contract, our credit risk will
equal the fair value gain in a
derivative. For our total return swaps,
the maximum amount of credit risk is
limited to the notional amount of the
contract, plus or minus unrealized gains
or losses. When the fair value of a
derivative contract is positive, this
indicates that the counterparty owes us,
thus creating a repayment risk for us.
When the fair value of a derivative
contract is negative, we owe the
counterparty and, therefore, we assume no
repayment risk. We minimize our credit
(or repayment) risk in derivative
instruments by:



|> |  | entering into
transactions with high-quality
counterparties whose credit ratings are
generally AA or higher;                     
|- |  | -----------------------------------------------------------------------------------------------------------------------------------
| 
|> |  | limiting
the amount of exposure to each
counterparty;                                                                              
| 
|> |  | monitoring the
financial condition of counterparties;
and                                                                          
| 
|> |  | ensuring that the reference
assets in total return swaps are highly
diversified so that concentrations of
credit risk do not arise.

When we have more than one outstanding
derivative transaction with the same
counterparty and we also have a legally
enforceable master netting agreement with
that counterparty, the net credit
exposure represents the net of the
positive and negative exposures with that
counterparty. When there is a net
negative exposure, we regard our credit
exposure to the counterparty as being
zero. The net mark-to-market position
with a particular counterparty represents
a reasonable measure of credit risk when
there is a legally enforceable master
netting agreement (i.e., a legal right to
a setoff of receivable and payable
derivative contracts) between ourselves
and that counterparty. Our policy is to
use master netting agreements with all
counterparties.

24 > FAIR VALUE OF FINANCIAL INSTRUMENTS

Fair value is defined as the value at
which positions could be closed out or
sold in a transaction with a willing
and knowledgeable counterparty over a
period of time consistent with our risk
management or investment strategy.

The accounting for an asset or liability
may differ based on the type of
instrument and/or its use in a risk
management or investing strategy. The
measurement approaches used in financial
statements include the following:



|> |  | recorded at fair value on the
balance sheet with changes in fair
value recorded each period in the
earnings;                                                                          
|- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| 
|> |  | recorded at fair value on
the balance sheet with changes in
fair value recorded each period in a
separate component of shareholders
equity and as part of other
comprehensive income;
| 
|> |  | recorded at cost (less
other-than-temporary impairments)
with changes in fair value not
recorded in the financial statements
but disclosed in the notes thereto;
or                   
| 
|> |  | recorded at the lower of cost or
market.                                                                                                                                              

Fair value is based on quoted market
prices, where available. If listed
prices or quotes are not available, fair
value is based on internally developed
models that primarily use market-based
or independent information as inputs.
These methods may produce a fair value
calculation that may not be indicative
of net realizable value or reflective of
future fair values.

|   |                                                    
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##### 



Fair value information

|                      |                                |      |          |       |            |   |          |       |            |   |       |     |  |   |       |     | 
|--------------------- | ------------------------------ | ---- | -------- | ----- | ---------- | - | -------- | ----- | ---------- | - | ----- | --- |  | - | ----- | --- | 
|At December 31        |                                | 2002 |          | 2001 
|                      |                                |      |          |      
|                      |                                |      | Carrying |       | Estimated  |   | Carrying |       | Estimated 
|                      |                                |      | amount   |       | fair value |   | amount   |       | fair value
|                      |                                |      |          |       |            |   |          |       |           
|Financial assets      |                                |      |          |       |            |   |          |       |            |   |       |     |  |   |       |    
|                      | Cash and equivalents1          |      | $        | 1,044 |            |   | $        | 1,044 |            |   | $     | 574 |  |   | $     | 574 | 
|                      | Accounts receivable1           |      |          | 72    |            |   |          | 72    |            |   |       | 60  |  |   |       | 60  | 
|                      | Available-for-sale securities2 |      |          | 30    |            |   |          | 30    |            |   |       | 46  |  |   |       | 46  | 
|                      | Derivative assets3             |      |          | 115   |            |   |          | 115   |            |   |       | 57  |  |   |       | 57  | 
|                      |                                |      |          |       |            |   |          |       |            |   |       |     |  |   |       |     | 
|                      |                                | $    | 1,261    |       |            | $ | 1,261    |       |            | $ | 737   |     |  | $ | 737   |    
|                      |                                |      |          |       |            |   |          |       |            |   |       |     |  |   |       |     | 
|Financial liabilities |                                |      |          |       |            |   |          |       |            |   |       |     |  |   |       |    
|                      | Accounts payable1              |      | $        | 164   |            |   | $        | 164   |            |   | $     | 175 |  |   | $     | 175 | 
|                      | Long-term debt4                |      |          | 781   |            |   |          | 858   |            |   |       | 802 |  |   |       | 853 | 
|                      | Derivative liabilities3        |      |          | 86    |            |   |          | 86    |            |   |       | 73  |  |   |       | 73  | 
|                      |                                |      |          |       |            |   |          |       |            |   |       |     |  |   |       |     | 
|                      |                                | $    | 1,031    |       |            | $ | 1,108    |       |            | $ | 1,050 |     |  | $ | 1,101 |    
|                      |                                |      |          |       |            |   |          |       |            |   |       |     |  |   |       |     | 



|1 | Fair values of cash and deposits with banks, accounts receivable and
accounts payable approximate their carrying amounts due to their
short-term nature and generally negligible credit losses.                                                                                                                                        
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| 
|2 | Our investment in debt and equity securities are recorded at their
estimated fair value. Quoted market prices, when available, are used to
determine fair value. If quoted market prices are not available, then fair
values are estimated by using quoted prices of instruments with similar
characteristics or discounted cash flows.
| 
|3 | The fair value for derivative instruments is determined based on liquid
market pricing as evidenced by exchange traded prices, broker-dealer
quotations or related input factors which assume all counterparties have
the same credit rating.                                                                                          
| 
|4 | The fair value of long-term debt is based on current market interest
rates, adjusted for our credit quality.                                                                                                                                                                                                                           

25 > SEGMENT INFORMATION

We operate in the gold mining industry
and our operations are managed on a
district basis. The Goldstrike District
includes the Betze-Post and Meikle
Mines in the United States. Our
other segment includes mainly
operations which have been or are
being closed.

Income statement information

|                                |  |            |       |                 |  |                     |       |      |  |      |       |      |  |      |       |      |  |      |       |  |  |   |     |  |  |                |     |  |  |   |     |  |  |   |     | 
|------------------------------- |  | ---------- | ----- | --------------- |  | ------------------- | ----- | ---- |  | ---- | ----- | ---- |  | ---- | ----- | ---- |  | ---- | ----- |  |  | - | --- |  |  | -------------- | --- |  |  | - | --- |  |  | - | --- | 
|                                |  |            |       |                 |  |                     |       |      |  |      |       |      |  |      |       |      |  |      |       |  |  |   |     |  |  | Segment income
|                                |  | Gold sales |       | Operating costs |  | before income taxes
|                                |  |            |       |                 |  |                    
|For the years ended December 31 |  | 2002       |       | 2001            |  | 2000                |       | 2002 |  | 2001 |       | 2000 |  | 2002 |       | 2001 |  | 2000
|                                |  |            |       |                 |  |                     |       |      |  |      |       |      |  |      |       |      |  |     
|Goldstrike                      |  | $          | 676   |                 |  | $                   | 767   |      |  | $    | 784   |      |  | $    | 440   |      |  | $    | 473   |  |  | $ | 401 |  |  | $              | 89  |  |  | $ | 156 |  |  | $ | 255 | 
|Pierina                         |  |            | 303   |                 |  |                     | 297   |      |  |      | 272   |      |  |      | 96    |      |  |      | 45    |  |  |   | 41  |  |  |                | 46  |  |  |   | 77  |  |  |   | 55  | 
|Bulyanhulu                      |  |            | 134   |                 |  |                     | 56    |      |  |      |      |      |  |      | 78    |      |  |      | 35    |  |  |   |    |  |  |                | 16  |  |  |   | 4   |  |  |   |    | 
|Kalgoorlie                      |  |            | 124   |                 |  |                     | 117   |      |  |      | 128   |      |  |      | 84    |      |  |      | 80    |  |  |   | 76  |  |  |                | 21  |  |  |   | 20  |  |  |   | 34  | 
|Eskay Creek                     |  |            | 121   |                 |  |                     | 98    |      |  |      | 101   |      |  |      | 16    |      |  |      | 16    |  |  |   | 7   |  |  |                | 57  |  |  |   | 42  |  |  |   | 36  | 
|Hemlo                           |  |            | 97    |                 |  |                     | 93    |      |  |      | 92    |      |  |      | 65    |      |  |      | 61    |  |  |   | 56  |  |  |                | 22  |  |  |   | 22  |  |  |   | 26  | 
|Plutonic                        |  |            | 105   |                 |  |                     | 89    |      |  |      | 82    |      |  |      | 58    |      |  |      | 49    |  |  |   | 54  |  |  |                | 36  |  |  |   | 28  |  |  |   | 18  | 
|Round Mountain                  |  |            | 132   |                 |  |                     | 116   |      |  |      | 73    |      |  |      | 79    |      |  |      | 77    |  |  |   | 50  |  |  |                | 32  |  |  |   | 21  |  |  |   | 11  | 
|Other                           |  |            | 275   |                 |  |                     | 356   |      |  |      | 404   |      |  |      | 155   |      |  |      | 244   |  |  |   | 265 |  |  |                | 58  |  |  |   | 38  |  |  |   | 58  | 
|                                |  |            |       |                 |  |                     |       |      |  |      |       |      |  |      |       |      |  |      |       |  |  |   |     |  |  |                |     |  |  |   |     |  |  |   |     | 
|                                |  | $          | 1,967 |                 |  | $                   | 1,989 |      |  | $    | 1,936 |      |  | $    | 1,071 |      |  | $    | 1,080 |  |  | $ | 950 |  |  | $              | 377 |  |  | $ | 408 |  |  | $ | 493 | 
|                                |  |            |       |                 |  |                     |       |      |  |      |       |      |  |      |       |      |  |      |       |  |  |   |     |  |  |                |     |  |  |   |     |  |  |   |     | 

| |                                                     |   
| | --------------------------------------------------- | --
| | B A R R I C K   A N N U A L   R E P O R T   2 0 0 2 | 93





---



##### 



Asset information

|                                |  |                |       |              |  |                              |       |      |  |      |     |      |  |      |     |      |  |   |     |  |  |   |     |  |  |   |     |  |  |   |     | 
|------------------------------- |  | -------------- | ----- | ------------ |  | ---------------------------- | ----- | ---- |  | ---- | --- | ---- |  | ---- | --- | ---- |  | - | --- |  |  | - | --- |  |  | - | --- |  |  | - | --- | 
|                                |  | Segment assets |       | Amortization |  | Segment capital expenditures
|                                |  |                |       |              |  |                             
|For the years ended December 31 |  | 2002           |       | 2001         |  | 2002                         |       | 2001 |  | 2000 |     | 2002 |  | 2001 |     | 2000
|                                |  |                |       |              |  |                              |       |      |  |      |     |      |  |      |     |     
|Goldstrike                      |  | $              | 1,496 |              |  | $                            | 1,617 |      |  | $    | 147 |      |  | $    | 138 |      |  | $ | 128 |  |  | $ | 46  |  |  | $ | 122 |  |  | $ | 176 | 
|Pierina                         |  |                | 546   |              |  |                              | 726   |      |  |      | 161 |      |  |      | 175 |      |  |   | 176 |  |  |   | 5   |  |  |   | 12  |  |  |   | 49  | 
|Bulyanhulu                      |  |                | 644   |              |  |                              | 659   |      |  |      | 40  |      |  |      | 17  |      |  |   |    |  |  |   | 56  |  |  |   | 153 |  |  |   | 203 | 
|Pascua-Lama                     |  |                | 192   |              |  |                              | 218   |      |  |      |    |      |  |      |    |      |  |   |    |  |  |   | 11  |  |  |   | 69  |  |  |   | 107 | 
|Kalgoorlie                      |  |                | 232   |              |  |                              | 247   |      |  |      | 19  |      |  |      | 17  |      |  |   | 18  |  |  |   | 14  |  |  |   | 6   |  |  |   | 15  | 
|Eskay Creek                     |  |                | 258   |              |  |                              | 313   |      |  |      | 48  |      |  |      | 40  |      |  |   | 58  |  |  |   | 8   |  |  |   | 10  |  |  |   | 6   | 
|Hemlo                           |  |                | 60    |              |  |                              | 69    |      |  |      | 10  |      |  |      | 10  |      |  |   | 10  |  |  |   | 6   |  |  |   | 6   |  |  |   | 5   | 
|Plutonic                        |  |                | 59    |              |  |                              | 51    |      |  |      | 11  |      |  |      | 12  |      |  |   | 10  |  |  |   | 20  |  |  |   | 11  |  |  |   | 12  | 
|Round Mountain                  |  |                | 79    |              |  |                              | 95    |      |  |      | 21  |      |  |      | 18  |      |  |   | 12  |  |  |   | 8   |  |  |   | 15  |  |  |   | 3   | 
|Other                           |  |                | 234   |              |  |                              | 147   |      |  |      | 62  |      |  |      | 74  |      |  |   | 81  |  |  |   | 54  |  |  |   | 70  |  |  |   | 36  | 
|                                |  |                |       |              |  |                              |       |      |  |      |     |      |  |      |     |      |  |   |     |  |  |   |     |  |  |   |     |  |  |   |     | 
|                                |  | $              | 3,800 |              |  | $                            | 4,142 |      |  | $    | 519 |      |  | $    | 501 |      |  | $ | 493 |  |  | $ | 228 |  |  | $ | 474 |  |  | $ | 612 | 
|                                |  |                |       |              |  |                              |       |      |  |      |     |      |  |      |     |      |  |   |     |  |  |   |     |  |  |   |     |  |  |   |     | 
|Cash and short-term investments |  |                | 1,074 |              |  |                              | 779   |      |  |      |     |      |  |      |     |      |  |   |     |  |  |   |     |  |  |   |     |  |  |   |     | 
|Other                           |  |                | 387   |              |  |                              | 281   |      |  |      |     |      |  |      |     |      |  |   |     |  |  |   |     |  |  |   |     |  |  |   |     | 
|                                |  |                |       |              |  |                              |       |      |  |      |     |      |  |      |     |      |  |   |     |  |  |   |     |  |  |   |     |  |  |   |     | 
|Enterprise total                |  | $              | 5,261 |              |  | $                            | 5,202 |      |  |      |     |      |  |      |     |      |  |   |     |  |  |   |     |  |  |   |     |  |  |   |     | 
|                                |  |                |       |              |  |                              |       |      |  |      |     |      |  |      |     |      |  |   |     |  |  |   |     |  |  |   |     |  |  |   |     | 

Geographic information

|                                |  |        |       |            |  |      |       |      |  |      |       |  |  |   |       |  |  |   |       | 
|------------------------------- |  | ------ | ----- | ---------- |  | ---- | ----- | ---- |  | ---- | ----- |  |  | - | ----- |  |  | - | ----- | 
|                                |  | Assets |       | Gold sales
|                                |  |        |       |           
|For the years ended December 31 |  | 2002   |       | 2001       |  | 2002 |       | 2001 |  | 2000
|                                |  |        |       |            |  |      |       |      |  |     
|United States                   |  | $      | 1,834 |            |  | $    | 1,873 |      |  | $    | 905   |  |  | $ | 1,041 |  |  | $ | 1,007 | 
|Peru                            |  |        | 733   |            |  |      | 731   |      |  |      | 303   |  |  |   | 297   |  |  |   | 272   | 
|Australia                       |  |        | 472   |            |  |      | 470   |      |  |      | 316   |  |  |   | 288   |  |  |   | 291   | 
|Canada                          |  |        | 533   |            |  |      | 525   |      |  |      | 299   |  |  |   | 269   |  |  |   | 283   | 
|Tanzania                        |  |        | 678   |            |  |      | 666   |      |  |      | 134   |  |  |   | 56    |  |  |   |      | 
|Chile/Argentina                 |  |        | 245   |            |  |      | 257   |      |  |      | 4     |  |  |   | 38    |  |  |   | 83    | 
|Other                           |  |        | 766   |            |  |      | 680   |      |  |      | 6     |  |  |   |      |  |  |   |      | 
|                                |  |        |       |            |  |      |       |      |  |      |       |  |  |   |       |  |  |   |       | 
|                                |  | $      | 5,261 |            |  | $    | 5,202 |      |  | $    | 1,967 |  |  | $ | 1,989 |  |  | $ | 1,936 | 
|                                |  |        |       |            |  |      |       |      |  |      |       |  |  |   |       |  |  |   |       | 

Segment income before income taxes

|                                                       |             |      |      |      |  |      |      |     |   |   |        |        |  
|------------------------------------------------------ | ----------- | ---- | ---- | ---- |  | ---- | ---- | --- | - | - | ------ | ------ | -
|For the years ended December 31                        |             | 2002 |      | 2001 |  | 2000
|                                                       |             |      |      |      |  |     
|Segment total                                          |             | $    | 377  |      |  | $    | 408  |     |   | $ | 493    |       
|Provision for mining assets
and other unusual charges: |             |      |      |      |  |      |      |     |   |   |        |       
|                                                       | Pascua-Lama |      |      |     |  |      |      |    |   |   |        | (1,036 | )
|                                                       | Goldstrike  |      |      |     |  |      |      |    |   |   |        | (300   | )
|                                                       | Pierina     |      |      |     |  |      |      |    |   |   |        | (184   | )
|                                                       | Other       |      |      |     |  |      |      | (59 | ) |   |        | (107   | )
|Exploration and business
development                   |             |      | (104 | )    |  |      | (103 | )   |   |   | (149   | )     
|Merger and related costs                               |             |      | 2    |      |  |      | (117 | )   |   |   |       |       
|Corporate expenses, net                                |             |      | (98  | )    |  |      | (47  | )   |   |   | (115   | )     
|Income taxes                                           |             |      | 16   |      |  |      | 14   |     |   |   | 209    |       
|                                                       |             |      |      |      |  |      |      |     |   |   |        |       
|Net income (loss)                                      |             | $    | 193  |      |  | $    | 96   |     |   | $ | (1,189 | )     
|                                                       |             |      |      |      |  |      |      |     |   |   |        |       

|   |                                                    
|-- | ---------------------------------------------------
|94 | B A R R I C K   A N N U A L   R E P O R T   2 0 0 2





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##### 



26 > JOINT VENTURES

Our major interests in joint ventures are
our 50% interest in the Kalgoorlie Mine
in Australia; our 50% interest in the
Round Mountain Mine in the United States;
and our 50% interest in the Hemlo Mine in
Canada.

Summary financial information for joint ventures (100%)

Income statement and cash flow information

|                                |                       |      |    |      |   |      |    |     |   |   |    |     |  
|------------------------------- | --------------------- | ---- | -- | ---- | - | ---- | -- | --- | - | - | -- | --- | -
|For the years ended December 31 |                       | 2002 |    | 2001 |   | 2000
|                                |                       |      |    |      |   |     
|                                | Revenues              |      | $  | 650  |   |      | $  | 578 |   |   | $  | 494 |  
|                                | Costs and expenses    |      |    | 582  |   |      |    | 522 |   |   |    | 426 |  
|                                |                       |      |    |      |   |      |    |     |   |   |    |     |  
|Net income                      |                       | $    | 68 |      |   | $    | 56 |     |   | $ | 68 |    
|                                |                       |      |    |      |   |      |    |     |   |   |    |     |  
|                                | Operating
activities1 |      | $  | 175  |   |      | $  | 163 |   |   | $  | 42  |  
|                                | Investing
activities1 |      | $  | (54  | ) |      | $  | (78 | ) |   | $  | (68 | )
|                                | Financing
activities1 |      | $  |     |   |      | $  |    |   |   | $  |    |  
|                                |                       |      |    |      |   |      |    |     |   |   |    |     |  



|1 | Net cash inflow (outflow)
|- | -------------------------

Balance sheet information

|               |                               |      |     |      |  |   |     |     | 
|-------------- | ----------------------------- | ---- | --- | ---- |  | - | --- | --- | 
|At December 31 |                               | 2002 |     | 2001
|               |                               |      |     |     
|Assets         |                               |      |     |      |  |   |     |    
|               | Inventories                   |      | $   | 46   |  |   | $   | 88  | 
|               | Property, plant and equipment |      |     | 553  |  |   |     | 658 | 
|               | Other assets                  |      |     | 79   |  |   |     | 48  | 
|               |                               |      |     |      |  |   |     |     | 
|               |                               | $    | 678 |      |  | $ | 794 |    
|               |                               |      |     |      |  |   |     |     | 
|Liabilities    |                               |      |     |      |  |   |     |    
|               | Current liabilities           |      |     | 116  |  |   |     | 124 | 
|               | Long-term obligations         |      |     | 67   |  |   |     | 78  | 
|               |                               |      |     |      |  |   |     |     | 
|               |                               | $    | 183 |      |  | $ | 202 |    
|               |                               |      |     |      |  |   |     |     | 

27 > CASH AND EQUIVALENTS

Cash and equivalents include cash, term
deposits and treasury bills with
original maturities of less than 90
days. We anticipate holding these cash
balances for an extended period of time.
We have entered into receive fixed
interest rate swaps with a total
notional amount of $650 million that
have been designated, and are effective,
as cash flow hedges of expected future
floating rate interest receipts. These
swaps mature at various times from 2004
to 2007 (refer to note 23).

28 > SUPPLEMENTAL CASH FLOW INFORMATION

|                                                |                                              |                                                               |     |      |     |      |    |     |      |   |     |    |     |  
|----------------------------------------------- | -------------------------------------------- | ------------------------------------------------------------- | --- | ---- | --- | ---- | -- | --- | ---- | - | --- | -- | --- | -
|For the years ended December 31                 |                                              | 2002                                                          |     | 2001 |     | 2000
|                                                |                                              |                                                               |     |      |     |     
|Components of other net operating activities    |                                              |                                                               |     |      |     |      |    |     |      |   |     |   
|                                                | Merger and related costs                     |                                                               | $   | (2   | )   |      | $  | 117 |      |   | $   |   |    
|                                                | Reclamation costs                            |                                                               |     | 34   |     |      |    | 54  |      |   |     | 35 |    
|                                                | Non-cash charges (credits):                  |                                                               |     |      |     |      |    |     |      |   |     |    |    
|                                                |                                              | Foreign currency translation adjustments (note 6)             |     |      | (2  | )    |    |     | 11   |   |     |    | 35  |  
|                                                |                                              | (Gains) losses on short-term investments (note 10)            |     |      | 4   |      |    |     | (1   | ) |     |    | (7  | )
|                                                |                                              | Gains on sale of property, plant and equipment                |     |      | (4  | )    |    |     | (9   | ) |     |    | (8  | )
|                                                |                                              | Amortization of deferred stock compensation (note 20)         |     |      | 3   |      |    |     |     |   |     |    |    |  
|                                                |                                              | Cumulative effect of changes in recognition policies (note 2) |     |      |    |      |    |     | 1    |   |     |    | 23  |  
|                                                | Changes in operating assets and liabilities: |                                                               |     |      |     |      |    |     |      |   |     |    |    
|                                                |                                              | Accounts receivable                                           |     |      | (12 | )    |    |     | (2   | ) |     |    | 21  |  
|                                                |                                              | Inventories and other current assets                          |     |      | 32  |      |    |     | 67   |   |     |    | (33 | )
|                                                |                                              | Accounts payable and other current liabilities                |     |      | 50  |      |    |     | (135 | ) |     |    | 81  |  
|                                                |                                              | Payments of merger and related costs                          |     |      | (50 | )    |    |     | (13  | ) |     |    |    |  
|                                                |                                              | Derivative instruments                                        |     |      | (22 | )    |    |     | 16   |   |     |    | 13  |  
|                                                |                                              | Payments of reclamation and closure costs                     |     |      | (70 | )    |    |     | (35  | ) |     |    | (39 | )
|                                                |                                              | Other items                                                   |     |      | (38 | )    |    |     | (47  | ) |     |    | 38  |  
|                                                |                                              |                                                               |     |      |     |      |    |     |      |   |     |    |    
|Other net operating activities                  |                                              | $                                                             | (77 | )    |     | $    | 24 |     |      | $ | 159 |   
|                                                |                                              |                                                               |     |      |     |      |    |     |      |   |     |    |    
|Cash payments included in operating activities: |                                              |                                                               |     |      |     |      |    |     |      |   |     |   
|                                                | Interest, net of amounts capitalized         |                                                               | $   | 57   |     |      | $  | 24  |      |   | $   | 22 |    
|                                                | Income taxes                                 |                                                               | $   | 46   |     |      | $  | 37  |      |   | $   | 39 |    
|                                                |                                              |                                                               |     |      |     |      |    |     |      |   |     |    |    

|                                                    |   
|--------------------------------------------------- | --
|B A R R I C K   A N
N U A L   R E P O R T   2 0 0 2 | 95