##### 



EXHIBIT 3
  Managements Responsibility for Financial Statements
    
 Jamie
C. Sokalsky
 68  § Managements Responsibility
    
    
    
    Barrick Financial Report 2006




---



##### 



Barrick Financial Report 2006
    
    
    
    Managements Report on Internal Control Over Financial Reporting §  69




---



##### 



Independent Auditors Report
 To the Shareholders of
Barrick Gold Corporation
  Consolidated financial statements
   70  §  Independent Auditors Report
    
    
    
    Barrick Financial Report 2006




---



##### 



Chartered Accountants
 Barrick Financial Report 2006
    
    
    

Independent
Auditors Report
 §  71




---



##### 



Comments by Auditors On Canada-US Reporting Differences
  
 Chartered Accountants
 72  §  Independent Auditors Report
    
    
    
    Barrick Financial Report 2006




---



##### 



Barrick Gold CorporationFor the years ended December 31 (in millions of United States dollars)
    
    2006
    
    
    
    2005
    
    
    2004Sales(notes 4 and 5)
    
    $
    5,636
    
    
    
    $
    2,350
    
    
    $
    1,932Costs and expensesCost of sales1(note 6)
    
    
    2,736
    
    
    
    
    1,214
    
    
    
    1,047Amortization (note 4)
    
    
    735
    
    
    
    
    427
    
    
    
    452Corporate administration
    
    
    142
    
    
    
    
    71
    
    
    
    71Exploration (note 4)
    
    
    171
    
    
    
    
    109
    
    
    
    96Project development expense
    
    
    119
    
    
    
    
    32
    
    
    
    45Other operating expenses (note 7a)
    
    
    124
    
    
    
    
    59
    
    
    
    47Impairment of long-lived assets (note 7b)
    
    
    17
    
    
    
    
    
    
    
    
    1394,044
    
    
    
    
    1,912
    
    
    
    1,897Interest income
    
    
    101
    
    
    
    
    38
    
    
    
    25Interest expense (note 19b)
    
    
    (126
    )
    
    
    
    (7
    )
    
    
    (19
    )Other income (note 7c)
    
    
    89
    
    
    
    
    49
    
    
    
    49Other expense (note 7d)
    
    
    (96
    )
    
    
    
    (56
    )
    
    
    (47
    )(32
    )
    
    
    
    24
    
    
    
    8Income from continuing operations before income taxes and other items
    
    
    1,560
    
    
    
    
    462
    
    
    
    43Income tax (expense) recovery (note 8)
    
    
    (348
    )
    
    
    
    (60
    )
    
    
    203Non-controlling interests
    
    
    1
    
    
    
    
    (1
    )
    
    
    2Equity in investees (note 11)
    
    
    (4
    )
    
    
    
    (6
    )
    
    
    Income from continuing operations
    
    
    1,209
    
    
    
    
    395
    
    
    
    248Discontinued operations (note 3b)Income from discontinued operations
    
    
    297
    
    
    
    
    
    
    
    
    Income taxes
    
    
    
    
    
    
    
    
    
    
    
    Income before cumulative effect of changes in accounting principles
    
    
    1,506
    
    
    
    
    395
    
    
    
    248Cumulative effect of changes in accounting principles (note 2e)
    
    
    
    
    
    
    
    6
    
    
    
    Net income for the year
    
    $
    1,506
    
    
    
    $
    401
    
    
    $
    248Earnings per share data(note 9)Income from continuing operationsBasic
    
    $
    1.44
    
    
    
    $
    0.74
    
    
    $
    0.47Diluted
    
    $
    1.42
    
    
    
    $
    0.73
    
    
    $
    0.46Net incomeBasic
    
    $
    1.79
    
    
    
    $
    0.75
    
    
    $
    0.47Diluted
    
    $
    1.77
    
    
    
    $
    0.75
    
    
    $
    0.46
 1.
    
    Exclusive of amortization (note 6).
  Barrick Financial Report 2006
    
    Financial Statements §  73




---



##### 



Barrick Gold CorporationFor the years ended December 31 (in millions of United States dollars, except per share data)
    
    2006
    
    
    
    2005
    
    
    2004Operating ActivitiesNet income
    
    $
    1,506
    
    
    
    $
    401
    
    
    $
    248Amortization (note 4)
    
    
    735
    
    
    
    
    427
    
    
    
    452Deferred income taxes (notes 8 and 22)
    
    
    (109
    )
    
    
    
    (30
    )
    
    
    (225
    )Hedge losses on acquired gold hedge position (note 19c)
    
    
    165
    
    
    
    
    
    
    
    
    Income from discontinued operations (note 3b)
    
    
    (297
    )
    
    
    
    
    
    
    
    Other items (note 10a)
    
    
    122
    
    
    
    
    (72
    )
    
    
    34Net cash provided by operating activities
    
    
    2,122
    
    
    
    
    726
    
    
    
    509Investing ActivitiesProperty, plant and equipmentCapital expenditures (note 4)
    
    
    (1,087
    )
    
    
    
    (1,104
    )
    
    
    (824
    )Sales proceeds
    
    
    8
    
    
    
    
    8
    
    
    
    43Acquisition of Placer Dome, net of cash acquired of $1,102 (note 3a)
    
    
    (160
    )
    
    
    
    
    
    
    
    Other acquisitions, net of cash acquired of $8 million (note 3c)
    
    
    (47
    )
    
    
    
    
    
    
    
    Acquisition of equity method investments (note 11)
    
    
    (125
    )
    
    
    
    (58
    )
    
    
    (40
    )Available-for-sale securities (note 11)Purchases
    
    
    (245
    )
    
    
    
    (31
    )
    
    
    (7
    )Sales
    
    
    46
    
    
    
    
    10
    
    
    
    9Other investing activities
    
    
    17
    
    
    
    
    (5
    )
    
    
    (2
    )Net cash used in investing activities
    
    
    (1,593
    )
    
    
    
    (1,180
    )
    
    
    (821
    )Financing ActivitiesCapital stockProceeds on exercise of stock options
    
    
    74
    
    
    
    
    92
    
    
    
    49Dividends (note 23a)
    
    
    (191
    )
    
    
    
    (118
    )
    
    
    (118
    )Repurchased for cash (note 23a)
    
    
    
    
    
    
    
    
    
    
    
    (95
    )Long-term debt (note 19b)Proceeds
    
    
    2,189
    
    
    
    
    179
    
    
    
    973Repayments
    
    
    (1,581
    )
    
    
    
    (59
    )
    
    
    (41
    )Settlement of acquired derivative instrument liabilities (note 19c)
    
    
    (1,840
    )
    
    
    
    
    
    
    
    Other financing activities
    
    
    2
    
    
    
    
    (1
    )
    
    
    (28
    )Net cash (used in) provided by financing activities
    
    
    (1,347
    )
    
    
    
    93
    
    
    
    740Cash Flows of Discontinued Operations(note 3b)Operating activities
    
    
    29
    
    
    
    
    
    
    
    
    Investing activities  proceeds on sale
    
    
    2,850
    
    
    
    
    
    
    
    
    Other investing activities
    
    
    (62
    )
    
    
    
    
    
    
    
    Financing activities
    
    
    11
    
    
    
    
    
    
    
    
    2,828
    
    
    
    
    
    
    
    
    Effect of exchange rate changes on cash and equivalents
    
    
    (4
    )
    
    
    
    
    
    
    
    Net increase (decrease) in cash and equivalents
    
    
    2,006
    
    
    
    
    (361
    )
    
    
    428Cash and equivalents at beginning of year(note 19a)
    
    
    1,037
    
    
    
    
    1,398
    
    
    
    970Cash and equivalents at end of year(note 19a)
    
    $
    3,043
    
    
    
    $
    1,037
    
    
    $
    1,398
  74
§ Financial Statements
    
    Barrick Financial Report 2006




---



##### 



Barrick Gold CorporationAt December 31 (in millions of United States dollars)
    
    2006
    
    
    
    2005AssetsCurrent assetsCash and equivalents (note 19a)
    
    $
    3,043
    
    
    
    $
    1,037Accounts receivable (note 13)
    
    
    234
    
    
    
    
    54Inventories (note 12)
    
    
    931
    
    
    
    
    402Other current assets (note 13)
    
    
    588
    
    
    
    
    2554,796
    
    
    
    
    1,748Non-current assetsAvailable-for-sale securities (note 11)
    
    
    646
    
    
    
    
    62Equity method investments (note 11)
    
    
    327
    
    
    
    
    138Property, plant and equipment (note 14)
    
    
    8,335
    
    
    
    
    4,146Intangible assets (note 15)
    
    
    75
    
    
    
    
    Goodwill (note 16)
    
    
    5,855
    
    
    
    
    Other assets (note 17)
    
    
    1,339
    
    
    
    
    768Total assets
    
    $
    21,373
    
    
    
    $
    6,862Liabilities and Shareholders EquityCurrent liabilitiesAccounts payable
    
    $
    686
    
    
    
    $
    386Short-term debt (note 19b)
    
    
    863
    
    
    
    
    80Other current liabilities (note 18)
    
    
    303
    
    
    
    
    941,852
    
    
    
    
    560Non-current liabilitiesLong-term debt (note 19b)
    
    
    3,244
    
    
    
    
    1,721Asset retirement obligations (note 20)
    
    
    843
    
    
    
    
    409Deferred income tax liabilities (note 22)
    
    
    798
    
    
    
    
    114Other liabilities (note 21)
    
    
    436
    
    
    
    
    208Total liabilities
    
    
    7,173
    
    
    
    
    3,012Non-controlling interests
    
    
    1
    
    
    
    
    Shareholders equityCapital stock (note 23)
    
    
    13,106
    
    
    
    
    4,222Retained earnings (deficit)
    
    
    974
    
    
    
    
    (341
    )Accumulated other comprehensive income (loss) (note 24)
    
    
    119
    
    
    
    
    (31
    )Total shareholders equity
    
    
    14,199
    
    
    
    
    3,850Contingencies and commitments (notes 14 and 27)Total liabilities and shareholders equity
    
    $
    21,373
    
    
    
    $
    6,862
   -s- Gregory C. Wilkins
    
    -s- Steven J. ShapiroGregory C. Wilkins, Director
    
    Steven J. Shapiro, Director
 Barrick Financial Report 2006
    
    Financial Statements  § 75




---



##### 



Barrick Gold CorporationFor the years ended December 31 (in millions of United States dollars)
    
    2006
    
    
    
    2005
    
    
    2004Common shares(number in millions)At January 1
    
    
    538
    
    
    
    
    534
    
    
    
    535Issued on exercise of stock options (note 25a)
    
    
    3
    
    
    
    
    4
    
    
    
    3Issued on acquisition of Placer Dome
    
    
    323
    
    
    
    
    
    
    
    
    Repurchased (note 23a)
    
    
    
    
    
    
    
    
    
    
    
    (4
    )At December 31
    
    
    864
    
    
    
    
    538
    
    
    
    534Common sharesAt January 1
    
    $
    4,222
    
    
    
    $
    4,129
    
    
    $
    4,115Issued on exercise of stock options (note 25a)
    
    
    74
    
    
    
    
    93
    
    
    
    49Issued on acquisition of Placer Dome (note 3a)
    
    
    8,761
    
    
    
    
    
    
    
    
    Repurchased (note 23a)
    
    
    
    
    
    
    
    
    
    
    
    (35
    )Options issued on acquisition of Placer Dome (note 3a)
    
    
    22
    
    
    
    
    
    
    
    
    Recognition of stock option expense (note 25a)
    
    
    27
    
    
    
    
    
    
    
    
    At December 31
    
    
    13,106
    
    
    
    
    4,222
    
    
    
    4,129Retained earnings (deficit)At January 1
    
    
    (341
    )
    
    
    
    (624
    )
    
    
    (694
    )Net income
    
    
    1,506
    
    
    
    
    401
    
    
    
    248Dividends (note 23a)
    
    
    (191
    )
    
    
    
    (118
    )
    
    
    (118
    )Adjustment on repurchase of common shares (note 23a)
    
    
    
    
    
    
    
    
    
    
    
    (60
    )At December 31
    
    
    974
    
    
    
    
    (341
    )
    
    
    (624
    )Accumulated other comprehensive income (loss) (note 24)
    
    
    119
    
    
    
    
    (31
    )
    
    
    69Total shareholders equity at December 31
    
    $
    14,199
    
    
    
    $
    3,850
    
    
    $
    3,574
  Barrick Gold CorporationFor the years ended December 31 (in millions of United States dollars)
    
    2006
    
    
    
    2005
    
    
    2004Net income
    
    $
    1,506
    
    
    
    $
    401
    
    
    $
    248Other comprehensive income (loss), net of tax (note 24)
    
    
    150
    
    
    
    
    (100
    )
    
    
    9Comprehensive income
    
    $
    1,656
    
    
    
    $
    301
    
    
    $
    257
  76§ Financial Statements
    
    Barrick Financial Report 2006




---



##### 



Barrick Gold Corporation.
 1 § Nature of Operations
  2 § Significant Accounting Policies
 a) Basis of Preparation
  b) Consolidation
    Barrick Financial Report 2006
    
    Notes to Consolidated Financial
Statements §  77




---



##### 



c) Foreign Currency Translation
  §
    
    non-monetary assets and liabilities using historical rates;§
    
    monetary assets and liabilities using closing rates with translation gains and losses
recorded in earnings; and§
    
    income and expenses using average exchange rates, except for expenses that relate to
non-monetary assets and liabilities measured at historical rates, which are translated using
the same historical rate as the associated non-monetary assets and liabilities.
 d) Use of Estimates
  §
    
    The treatment of mine development costs as either an asset or an expense;§
    
    whether long-lived assets are impaired, and if so, estimates of the fair value of those assets and any corresponding impairment charge;§
    
    our ability to realize deferred income tax assets;§
    
    the useful lives of long-lived assets and the measurement of amortization;§
    
    the fair value of asset retirement obligations;§
    
    the likelihood of loss contingencies occurring and the amount of any potential loss;§
    
    whether investments are impaired;§
    
    the amount of income tax expense;§
    
    allocations of the purchase price in business combinations to assets and liabilities acquired; and§
    
    the valuation of reporting units used in the initial allocation of goodwill and subsequent goodwill impairment tests.
  Significant Changes in Estimates
 Gold and Copper Mineral Reserves
  Asset Retirement Obligations (AROs)
  78
§ Notes to Consolidated Financial Statements
    
    Barrick Financial Report 2006




---



##### 



Deferred Tax Valuation Allowances
  Placer Dome Purchase Price Allocation
  e) Accounting Changes
 EITF 04-6 Accounting for Stripping Costs Incurred During Production in the Mining Industry
  FAS 123R, Accounting for Stock-Based Compensation
     Barrick Financial Report 2006
    
    Notes to Consolidated Financial
Statements § 79




---



##### 



FAS 151, Inventory Costs
   FAS 158, Employers Accounting for Defined Benefit Pension and Other Post-retirement Plans
    80
§ Notes to Consolidated Financial Statements
    
    Barrick Financial Report 2006




---



##### 



SEC
Staff Accounting Bulletin No. 108  Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year
Financial Statements (SAB 108)
  f) Accounting Developments
 FASB Interpretation No. 48  Accounting for Uncertainty in Tax Positions (FIN 48)
    Barrick Financial Report 2006
    
    Notes to Consolidated Financial
Statements § 81




---



##### 



FAS 157, Fair Value Measurements
     FSP AUG AIR-1  Accounting for Planned Major Maintenance Activities (FSP Air-1)
   82
§ Notes to Consolidated Financial Statements
    
    Barrick Financial Report 2006




---



##### 



g) Other Significant Accounting Policies
 Note
    
    
    PageAcquisitions and divestitures
    
    
    3
    
    
    
    83Segment information
    
    
    4
    
    
    
    88Revenue and gold sales contracts
    
    
    5
    
    
    
    90Cost of sales
    
    
    6
    
    
    
    92Other (income) expense
    
    
    7
    
    
    
    92Income tax (recovery) expense
    
    
    8
    
    
    
    94Earnings per share
    
    
    9
    
    
    
    96Operating cash flow  other items
    
    
    10
    
    
    
    97Investments
    
    
    11
    
    
    
    97Inventories
    
    
    12
    
    
    
    100Accounts receivable, and other current assets
    
    
    13
    
    
    
    101Property, plant and equipment
    
    
    14
    
    
    
    102Intangible assets
    
    
    15
    
    
    
    104Goodwill
    
    
    16
    
    
    
    104Other assets
    
    
    17
    
    
    
    105Other current liabilities
    
    
    18
    
    
    
    105Financial instruments
    
    
    19
    
    
    
    105Asset retirement obligations
    
    
    20
    
    
    
    115Other non-current liabilities
    
    
    21
    
    
    
    116Deferred income taxes
    
    
    22
    
    
    
    116Capital stock
    
    
    23
    
    
    
    117Other comprehensive income (loss)
    
    
    24
    
    
    
    118Stock-based compensation
    
    
    25
    
    
    
    119Post-retirement benefits
    
    
    26
    
    
    
    121Litigation and claims
    
    
    27
    
    
    
    125Unincorporated joint ventures
    
    
    28
    
    
    
    127
 3 § Acquisitions and Divestitures
 a)
Acquisition of Placer Dome Inc. (Placer Dome)  Placer Dome Offer and Acceptance
  Accounting for the Placer Dome Acquisition
  Value of 322.8 million Barrick common shares issued at $27.14 per share1
    
    $
    8,761Value of 2.7 million fully vested stock options
    
    
    22Cash
    
    
    1,239Transaction costs
    
    
    32$
    10,054
 1.
    
    The measurement of the common share component of the purchase consideration represents the
average closing price on the New York Stock Exchange for the two days prior to and two days
after the public announcement on December 22, 2005 of our final offer for Placer Dome.
  Barrick Financial Report 2006
    
    Notes to Consolidated Financial
Statements § 83




---



##### 



Inventory
    
    Finished goods and work
in process valued at
estimated selling prices
less disposal costs,
costs to complete and a
reasonable profit
allowance for the
completing and selling
effort.Building and equipment
    
    Reproduction and/or
replacement cost or
market value for current
function and service
potential, adjusted for
physical, functional and
economic obsolescence.Proven and probable reserves and value beyond
proven and probable reserves at producing
mines
    
    Multi-period excess
earnings approach
considering the
prospective level of cash
nd flows and fair value of
other assets at each
mine.Development projects
    
    Discounted future cash
flows considering the
prospective level of cash
flows from future
operations and necessary
capital cost
expenditures.Exploration properties
    
    Appraised values
considering costs
incurred, earn-in
agreements and comparable
market transactions,
where applicable.Intangible assets
    
    Value based on potential
cost savings, price
differential, discounted
future cash flows, or
comparable market
transactions, as
applicable.Long-term debt and derivative instruments
    
    Estimated fair values
consistent with the
methods disclosed in note
19d.Asset retirement obligations
    
    Estimated fair values
consistent with the
methods disclosed in note
20.
 Summary Purchase Price Allocation
 Cash
    
    $
    1,102Inventories
    
    
    428Other current assets
    
    
    198Property, plant and equipmentBuildings, plant and equipment
    
    
    2,946Proven and probable reserves
    
    
    1,571Value beyond proven and probable reserves
    
    
    419Intangible assets (note 15)
    
    
    85Assets of discontinued operations1
    
    
    1,744Other assets
    
    
    347Goodwill
    
    
    6,506Total assets
    
    
    15,346Current liabilities
    
    
    669Liabilities of discontinued operations1
    
    
    107Derivative instrument liabilities
    
    
    1,729Long-term debt
    
    
    1,252Asset retirement obligations
    
    
    387Deferred income tax liabilities
    
    
    686Total liabilities
    
    
    4,830Non-controlling interests
    
    
    462Net assets acquired
    
    $
    10,054
 1.
    
    Includes operations that were sold to Goldcorp.
 Severance Costs
 Amounts recorded at acquisition
    
    $
    48Settlements in 2006
    
    
    45Amounts outstanding at December 31, 2006
    
    $
    3
  84 § Notes to Consolidated Financial Statements
    
    Barrick Financial Report 2006




---



##### 



Pro Forma Information (Unaudited)
 Pro Forma Consolidated Statement of Income
 For the year ended December 31, 2005
    
    
    
    
    
    
    
    
    
    
    
    
    
    Pro forma($ millions of US dollars,
    
    
    
    
    
    
    
    
    
    
    
    
    
    consolidated
    
    
    Pro formaexcept per share data in dollars)
    
    
    
    
    
    
    
    
    
    
    
    
    
    Barrick before
    
    
    adjustments forsale of certain
    
    
    sale of certainPro forma
    
    
    operations to
    
    
    operations to
    
    
    Pro formaAs reported
    
    
    purchase
    
    
    Goldcorp and
    
    
    Goldcorp and
    
    
    consolidatedBarrick
    
    
    Placer Dome
    
    
    adjustments1
    
    
    Gold Fields
    
    
    Gold Fields2
    
    
    BarrickSales
    
    $
    2,350
    
    
    $
    1,978
    
    
    
    
    
    
    $
    4,328
    
    
    
    (352
    )  (f)
    
    $
    3,976Costs and expensesCost of sales3
    
    
    1,214
    
    
    
    1,271
    
    
    
    
    
    
    
    2,485
    
    
    
    (265
    )  (f)
    
    
    2,220Amortization
    
    
    427
    
    
    
    264
    
    
    
    131
    (a)
    
    
    822
    
    
    
    (50
    )  (f)
    
    
    772Corporate administration
    
    
    71
    
    
    
    68
    
    
    
    
    
    
    
    139
    
    
    
    
    
    
    
    139Exploration
    
    
    109
    
    
    
    91
    
    
    
    
    
    
    
    200
    
    
    
    (28
    )  (f)
    
    
    172Project development expense
    
    
    32
    
    
    
    81
    
    
    
    
    
    
    
    113
    
    
    
    
    
    
    
    113Other operating expenses
    
    
    59
    
    
    
    6
    
    
    
    
    
    
    
    65
    
    
    
    
    
    
    
    65Impairment of long-lived assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,912
    
    
    
    1,781
    
    
    
    131
    
    
    
    3,824
    
    
    
    (343
    )
    
    
    3,481Interest income
    
    
    38
    
    
    
    39
    
    
    
    5
    (b)
    
    
    82
    
    
    
    
    
    
    
    82Interest expense
    
    
    (7
    )
    
    
    (92
    )
    
    
    1
    (c)
    
    
    (98
    )
    
    
    
    
    
    
    (98
    )Other income
    
    
    49
    
    
    
    44
    
    
    
    
    
    
    
    93
    
    
    
    (2
    )  (f)
    
    
    91Other expense
    
    
    (56
    )
    
    
    (79
    )
    
    
    21
    (d)
    
    
    (114
    )
    
    
    
    
    
    
    (114
    )24
    
    
    
    (88
    )
    
    
    27
    
    
    
    (37
    )
    
    
    (2
    )
    
    
    (39
    )Income from continuing operations
before income taxes and
other items
    
    
    462
    
    
    
    109
    
    
    
    (104
    )
    
    
    467
    
    
    
    (11
    )
    
    
    456Income tax (expense) recovery
    
    
    (60
    )
    
    
    (21
    )
    
    
    (8
    )   (e)
    
    
    (89
    )
    
    
    4
    (g)
    
    
    (85
    )Non-controlling interests
    
    
    (1
    )
    
    
    2
    
    
    
    
    
    
    
    1
    
    
    
    
    
    
    
    1Equity in investees
    
    
    (6
    )
    
    
    4
    
    
    
    
    
    
    
    (2
    )
    
    
    (4
    )  (f)
    
    
    (6
    )Income before cumulative
effect of changes in
accounting principles
    
    
    395
    
    
    
    94
    
    
    
    (112
    )
    
    
    377
    
    
    
    (11
    )
    
    
    366Cumulative effect of changes
in accounting principles
    
    
    6
    
    
    
    (14
    )
    
    
    
    
    
    
    (8
    )
    
    
    
    
    
    
    (8
    )Net income for the year
    
    $
    401
    
    
    $
    80
    
    
    $
    (112
    )
    
    $
    369
    
    
    $
    (11
    )
    
    $
    358Earnings per share data:Net incomeBasic and diluted
    
    $
    0.75
    
    
    $
    0.18
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    0.42
 1.
    
    Adjustments to reflect certain estimated effects of purchase accounting.2.
    
    Adjustments to reflect the estimated effects of the sale of certain Placer Dome operations to
Goldcorp and Gold Fields.3.
    
    Exclusive of amortization.
 Barrick Financial Report 2006
    
    Notes to Consolidated Financial Statements § 85




---



##### 



Basis of Presentation
   Pro Forma Assumptions and Adjustments
  Pro Forma Adjustments
  (a)
    
    An increase in amortization expense by $131 million to reflect the value assigned to
property, plant and equipment and intangible assets in the purchase price allocation.(b)
    
    An increase in interest income by $5 million for the year ended December 31, 2005 to reflect
interest income earned on cash proceeds generated by the assumed exercise of Placer Dome
stock options.(c)
    
    An increase in interest expense by $48 million for the year ended December 31, 2005 to
reflect the interest costs (net of amounts that would have been capitalized to Barrick
development projects) relating to the cash component of the Offer that was financed through
temporary credit facilities. A decrease in interest expense by $49 million for the year ended
December 31, 2005 to reflect the assumed avoidance of interest on the temporary financing for
the cash component of the Offer assuming the repayment of such financing from the receipt of
cash proceeds from the sale of certain Placer Dome operations to Goldcorp.(d)
    
    A decrease in other expense by $21 million to de-recognize non-recurring transaction costs
recorded by Placer Dome relating to the Barrick offer.(e)
    
    A debit to tax expense of $8 million for the year ended December 31, 2005 to reflect the tax
effect of the pro forma purchase adjustments in (a) through (d).(f)
    
    Adjustments to de-recognize the revenues and expenses for the year ended December 31, 2005
relating to the Placer Dome operations that were sold to Goldcorp and Gold Fields.(g)
    
    Adjustments to de-recognize income tax expense for the operations that were sold to Goldcorp
and Gold Fields for the year ended December 31, 2005 and to record the tax effect of other
pro forma adjustments relating to the sale of certain Placer Dome operations to Goldcorp and
Gold Fields.
 Pro Forma Earnings Per Share
 For the year ended December 31, 2005(millions of shares or US dollars, except per share data in dollars)Actual weighted average number of Barrick common shares outstanding
    
    
    536Assumed number of Barrick common shares issued to Placer Dome
shareholders
    
    
    323Pro forma weighted average number of Barrick common shares
outstanding
    
    
    859Pro forma net income
    
    $
    358Pro forma earnings per share  basic
    
    $
    0.42Pro forma weighted average number of Barrick common shares
outstanding
    
    
    859Dilutive effect of stock options
    
    
    2Pro forma weighted average number of
Barrick common shares outstanding  diluted
    
    
    861Pro forma earnings per share  diluted
    
    $
    0.42
 86§ Notes to Consolidated Financial Statements
    
    Barrick Financial Report 2006




---



##### 



b) Discontinued Operations
 Results of Discontinued Operations
 For the years ended December 31
    
    2006
    
    
    2005Gold salesSouth Deep operations
    
    $
    158
    
    
    $
    Operations sold to Goldcorp
    
    
    83
    
    
    
    $
    241
    
    
    $
    Income (loss) before taxSouth Deep1
    
    
    8
    
    
    
    Gain on sale of South Deep
    
    
    288Operations sold to Goldcorp
    
    
    1
    
    
    
    $
    297
    
    
    $
    
 1.
    
    Amounts are disclosed net of non-controlling interests of $24 million.
 South Deep
    Operations Sold to Goldcorp
   c) Acquisition of Pioneer Metals Inc. (Pioneer)
  d) Sale of Paddington Operations
  Barrick Financial Report 2006
    
    Notes to Consolidated Financial Statements § 87




---



##### 



4 § Segment Information
  Income Statement Information
 Sales
    
    
    Segment expenses
    
    
    Segment income (loss)1For the years ended December 31
    
    2006
    
    
    2005
    
    
    2004
    
    
    2006
    
    
    2005
    
    
    2004
    
    
    2006
    
    
    2005
    
    
    2004GoldNorth America
    
    $
    1,806
    
    
    $
    1,249
    
    
    $
    1,140
    
    
    $
    1,051
    
    
    $
    695
    
    
    $
    651
    
    
    $
    513
    
    
    $
    341
    
    
    $
    250South America
    
    
    1,110
    
    
    
    521
    
    
    
    251
    
    
    
    307
    
    
    
    147
    
    
    
    58
    
    
    
    676
    
    
    
    273
    
    
    
    86Australia Pacific
    
    
    1,160
    
    
    
    401
    
    
    
    406
    
    
    
    757
    
    
    
    264
    
    
    
    238
    
    
    
    228
    
    
    
    126
    
    
    
    123Africa
    
    
    409
    
    
    
    179
    
    
    
    135
    
    
    
    228
    
    
    
    108
    
    
    
    100
    
    
    
    98
    
    
    
    (13
    )
    
    
    1CopperSouth America
    
    
    967
    
    
    
    
    
    
    
    
    
    
    
    283
    
    
    
    
    
    
    
    
    
    
    
    635
    
    
    
    
    
    
    
    Australia Pacific
    
    
    184
    
    
    
    
    
    
    
    
    
    
    
    110
    
    
    
    
    
    
    
    
    
    
    
    57
    
    
    
    
    
    
    
    $
    5,636
    
    
    $
    2,350
    
    
    $
    1,932
    
    
    $
    2,736
    
    
    $
    1,214
    
    
    $
    1,047
    
    
    $
    2,207
    
    
    $
    727
    
    
    $
    460
 1.
    
    Segment income (loss) represents segment sales, less segment expense and segment amortization.
 Exploration1
    
    
    Regional business unit costs1For the years ended December 31
    
    2006
    
    
    2005
    
    
    2004
    
    
    2006
    
    
    2005
    
    
    2004North America
    
    $
    64
    
    
    $
    34
    
    
    $
    30
    
    
    $
    30
    
    
    $
    14
    
    
    $
    16South America
    
    
    22
    
    
    
    19
    
    
    
    20
    
    
    
    19
    
    
    
    6
    
    
    
    1Australia Pacific
    
    
    44
    
    
    
    13
    
    
    
    17
    
    
    
    38
    
    
    
    16
    
    
    
    7Africa
    
    
    22
    
    
    
    34
    
    
    
    23
    
    
    
    1
    
    
    
    
    
    
    
    Other expense outside reportable segments
    
    
    19
    
    
    

    
    
    

    
    96
    
    
    
    
    
    
    
    
    
    
    $
    171
    
    
    $
    109
    
    
    $
    96
    
    
    $
    88
    
    
    $
    36
    
    
    $
    24
 1.
    
    Exploration and regional business unit costs are excluded from the measure of segment
income but are reported separately by operating segment to the Chief Operating Decision
Maker.
 88§ Notes to Consolidated Financial Statements
    
    Barrick Financial Report 2006




---



##### 



Geographic Information
 Long-lived assets2
    
    
    Sales1For the years ended December 31
    
    2006
    
    
    2005
    
    
    2006
    
    
    2005
    
    
    2004North AmericaUnited States
    
    $
    2,518
    
    
    $
    1,431
    
    
    $
    1,638
    
    
    $
    1,073
    
    
    $
    934Canada
    
    
    921
    
    
    
    313
    
    
    
    168
    
    
    
    176
    
    
    
    206Dominican
Republic
    
    
    78
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    South AmericaPeru
    
    
    492
    
    
    
    540
    
    
    
    852
    
    
    
    521
    
    
    
    251Chile
    
    
    1,599
    
    
    
    269
    
    
    
    967
    
    
    
    
    
    
    
    Argentina
    
    
    1,014
    
    
    
    843
    
    
    
    258
    
    
    
    
    
    
    
    Australia PacificAustralia
    
    
    2,142
    
    
    
    815
    
    
    
    1,147
    
    
    
    401
    
    
    
    406PapuaNew Guinea
    
    
    438
    
    
    
    
    
    
    
    197
    
    
    
    
    
    
    
    AfricaTanzania
    
    
    993
    
    
    
    669
    
    
    
    409
    
    
    
    179
    
    
    
    135Other
    
    
    452
    
    
    
    234
    
    
    
    
    
    
    
    
    
    
    
    $
    10,647
    
    
    $
    5,114
    
    
    $
    5,636
    
    
    $
    2,350
    
    
    $
    1,932
 1.
    
    Presented based on the location in which the sale originated.2.
    
    Long-lived assets include property,
plant and equipment, and other tangible
non-current assets.Reconciliation of Segment Income
 For the years ended December 31
    
    2006
    
    
    2005
    
    
    2004Segment income
    
    $
    2,207
    
    
    $
    727
    
    
    $
    460Amortization of corporate assets
    
    
    (42
    )
    
    
    (18
    )
    
    
    (27
    )Exploration
    
    
    (171
    )
    
    
    (109
    )
    
    
    (96
    )Project development expense
    
    
    (119
    )
    
    
    (32
    )
    
    
    (45
    )Corporate administration
    
    
    (142
    )
    
    
    (71
    )
    
    
    (71
    )Other operating expenses
    
    
    (124
    )
    
    
    (59
    )
    
    
    (47
    )Impairment of long-lived assets
    
    
    (17
    )
    
    
    
    
    
    
    (139
    )Other income (expense)
    
    
    (32
    )
    
    
    24
    
    
    
    8Income from continuing operations
before income taxes and other items
    
    $
    1,560
    
    
    $
    462
    
    
    $
    43
 Asset Information
 Segment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Segmentlong-lived assets
    
    
    Amortization
    
    
    capital expendituresFor the years ended December 31
    
    2006
    
    
    2005
    
    
    2006
    
    
    2005
    
    
    2004
    
    
    2006
    
    
    2005
    
    
    2004GoldNorth America
    
    $
    3,517
    
    
    $
    1,744
    
    
    $
    242
    
    
    $
    213
    
    
    $
    239
    
    
    $
    260
    
    
    $
    218
    
    
    $
    104South America
    
    
    1,829
    
    
    
    1,652
    
    
    
    127
    
    
    
    101
    
    
    
    107
    
    
    
    343
    
    
    
    525
    
    
    
    509Australia Pacific
    
    
    2,142
    
    
    
    815
    
    
    
    175
    
    
    
    46
    
    
    
    45
    
    
    
    340
    
    
    
    308
    
    
    
    110Africa
    
    
    993
    
    
    
    669
    
    
    
    83
    
    
    
    49
    
    
    
    34
    
    
    
    93
    
    
    
    45
    
    
    
    94CopperSouth America
    
    
    1,276
    
    
    
    
    
    
    
    49
    
    
    
    
    
    
    
    
    
    
    
    18
    
    
    
    
    
    
    
    Australia Pacific
    
    
    438
    
    
    
    
    
    
    
    17
    
    
    
    
    
    
    
    
    
    
    
    21
    
    
    
    
    
    
    
    Segment total
    
    
    10,195
    
    
    
    4,880
    
    
    
    693
    
    
    
    409
    
    
    
    425
    
    
    
    1,075
    
    
    
    1,096
    
    
    
    817Cash and equivalents
    
    
    3,043
    
    
    
    1,037
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Accounts receivable, inventories,
other current assets
    
    
    1,753
    
    
    
    711
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Intangible assets
    
    
    75
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Goodwill
    
    
    5,855
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other items not allocated to segments
    
    
    452
    
    
    
    234
    
    
    
    42
    
    
    
    18
    
    
    
    27
    
    
    
    12
    
    
    
    8
    
    
    
    7Enterprise total
    
    $
    21,373
    
    
    $
    6,862
    
    
    $
    735
    
    
    $
    427
    
    
    $
    452
    
    
    $
    1,087
    
    
    $
    1,104
    
    
    $
    824
 Barrick Financial Report 2006
    
    Notes to Consolidated Financial Statements § 89




---



##### 



5 § Revenue and Gold Sales Contracts
 For the years ended December 31
    
    2006
    
    
    2005
    
    
    2004Gold bullion sales1Spot market sales
    
    $
    3,949
    
    
    $
    1,940
    
    
    $
    1,111Gold sales contracts
    
    
    369
    
    
    
    300
    
    
    
    7094,318
    
    
    
    2,240
    
    
    
    1,820Concentrate sales
    
    
    167
    
    
    
    110
    
    
    
    112$
    4,485
    
    
    $
    2,350
    
    
    $
    1,932Copper sales1Copper cathode sales
    
    $
    951
    
    
    $
    
    
    
    $
    Concentrate sales
    
    
    200
    
    
    
    
    
    
    
    $
    1,151
    
    
    $
    
    
    
    $
    
 1.
    
    Revenues include amounts transferred from OCI to earnings for commodity cash flow hedges
(see note 19c and 24).
 Products
  Accounting Policy
  Gold Bullion Sales
  Gold Sales Contracts
    90§ Notes to Consolidated Financial Statements
    
    Barrick Financial Report 2006




---



##### 



Mark-to-Market Value
 Total
    
    
    At Dec. 31ounces in
    
    
    2006$ millions
    
    millions
    
    
    value1Project Gold Sales Contracts
    
    
    9.5
    
    
    $
    (3,187
    )Corporate Gold Sales Contracts
    
    
    1.3
    
    
    
    (387
    )Floating Spot Price Gold Sales Contracts
    
    
    1.2
    
    
    
    (260
    )12.0
    
    
    $
    (3,834
    )
 1.
    
    At a spot gold price of $632 per ounce.
    Concentrate Sales
  Copper Cathode Sales
  Barrick Financial Report 2006

    Notes to Consolidated Financial
Statements § 91




---



##### 



6 § Cost of Sales
 Gold
    
    
    CopperFor the years ended December 31
    
    2006
    
    
    2005
    
    
    2004
    
    
    2006
    
    
    2005
    
    
    2004Cost of goods sold1
    
    $
    2,289
    
    
    $
    1,265
    
    
    $
    1,128
    
    
    $
    390
    
    
    $
    
    
    
    $
    By-product revenues2
    
    
    (123
    )
    
    
    (132
    )
    
    
    (146
    )
    
    
    (1
    )
    
    
    
    
    
    
    Royalty expense
    
    
    150
    
    
    
    63
    
    
    
    53
    
    
    
    4
    
    
    
    
    
    
    
    Mining production taxes
    
    
    27
    
    
    
    18
    
    
    
    12
    
    
    
    
    
    
    
    
    
    
    
    $
    2,343
    
    
    $
    1,214
    
    
    $
    1,047
    
    
    $
    393
    
    
    $
    
    
    
    $
    
 1.
    
    Cost of goods sold includes accretion expense at producing mines of $31 million (2005: $11
million; 2004: $11 million). Cost of goods sold includes charges to reduce the cost of
inventory to net realizable value as follows: $28 million in 2006; $12 million in 2005 and $9
million in 2004. The cost of inventory sold in the period reflects all components capitalized
to inventory, except that, for presentation purposes, the component of inventory cost
relating to amortization of property, plant and equipment is classified in the income
statement under amortization. Some companies present this amount under cost of sales. The
amount presented in amortization rather than cost of sales was $693 million in 2006; $409
million in 2005 and $425 million in 2004. In 2004, cost of goods sold includes the reversal
of $15 million of accrued costs on resolution of the Peruvian tax assessment (see note 8).2.
    
    We use silver sales contracts to sell a portion of silver produced as a by-product. Silver
sales contracts have similar delivery terms and pricing mechanisms as gold sales contracts.
At December 31, 2006, we had fixed-price commitments to deliver 13.1 million ounces of silver
at an average price of $6.45 per ounce and floating spot price silver sales contracts for 7.0
million ounces over periods primarily of up to 10 years. The mark-to-market on silver sales
contracts at December 31, 2006 was negative $100 million (2005: negative $52 million).
 Royalties
   7 § Other (Income) Expense
 a) Other Operating Expenses
 For the years ended December 31
    
    2006
    
    
    2005
    
    
    2004Regional business unit costs1
    
    $
    88
    
    
    $
    36
    
    
    $
    24Community development costs2
    
    
    15
    
    
    
    
    
    
    
    Environmental remediation costs
    
    
    8
    
    
    
    13
    
    
    
    14World Gold Council fees
    
    
    13
    
    
    
    10
    
    
    
    9$
    124
    
    
    $
    59
    
    
    $
    47
 1.
    
    Relates to costs incurred at regional business unit offices.2.
    
    In 2006, we paid amounts relating to new community programs in Peru and Tanzania.
 92§ Notes to Consolidated Financial Statements
    
    Barrick Financial Report 2006




---



##### 



Environmental Remediation Costs
   b) Impairment of Long-lived Assets
 For the years ended December 31
    
    2006
    
    
    2005
    
    
    2004Eskay Creek1
    
    $
    
    
    
    $
    
    
    
    $
    58Peruvian exploration properties2,3
    
    
    17
    
    
    
    
    
    
    
    67Other
    
    
    
    
    
    
    
    
    
    
    14$
    17
    
    
    $
    
    
    
    $
    139
 1.
    
    The asset group that comprises the Eskay Creek mine was tested for impairment effective
December 31, 2004. The principal factors that caused us to test this asset group for
impairment included: downward revisions to proven and probable reserves; the impact of the
continued strengthening of the C$ against the US$ and upward revisions to expected asset
retirement costs in the fourth quarter of 2004. An impairment charge of $58 million was
recorded, which represents the amount by which the carrying amount of the asset group exceeds
its estimated fair value. Fair value was estimated using the method described in note 14c.2.
    
    In 2006, the carrying amount of Cuerpo Sur, an extension of Pierina, was tested for
impairment on completion of the annual life of mine planning process. An impairment charge of
$17 million was recorded to reduce the carrying amount to the estimated fair value.3.
    
    At the end of 2004, upon completion of the exploration program for the year, we assessed the
results and updated our future plans for various exploration properties in Peru that were
originally acquired through the Arequipa acquisition in 1996. We concluded that the results
and future potential did not merit any further investment for these properties. The assets
were tested for impairment, and an impairment charge of $67 million was recorded that
reflects the amounts by which their carrying amounts exceed their estimated fair values. The
fair value of this group of assets was judged to be minimal due to the unfavorable results of
exploration work on the properties.
 c) Other Income
 For the years ended December 31
    
    2006
    
    
    2005
    
    
    2004Non-hedge derivative gains (note 19d)
    
    $
    
    
    
    $
    6
    
    
    $
    5Gains on sale of assets1
    
    
    9
    
    
    
    5
    
    
    
    36Gains on sale of investments (note 11)
    
    
    6
    
    
    
    17
    
    
    
    6Gain on Kabanga transaction
    
    
    
    
    
    
    15
    
    
    
    Gain on vend-in to Highland
Gold (note 11)
    
    
    51
    
    
    
    
    
    
    
    Royalty income
    
    
    10
    
    
    
    6
    
    
    
    2Sale of water rights
    
    
    5
    
    
    
    
    
    
    
    Other
    
    
    8
    
    
    
    
    
    
    
    $
    89
    
    
    $
    49
    
    
    $
    49
 1.
    
    In 2006, we sold certain properties in Canada and Chile. In 2005, we sold some land
positions in Australia. In 2004 we sold various mining properties, including the
Holt-McDermott mine in Canada and certain land positions around our inactive mine sites in
the United States.
 Kabanga Transaction
  Barrick Financial Report 2006
    
    Notes to Consolidated Financial Statements § 93




---



##### 



d) Other Expense
 For the years ended December 31
    
    2006
    
    
    2005
    
    
    2004Changes in AROs at closed mines
    
    $
    53
    
    
    $
    15
    
    
    $
    22Accretion expense at closed
mines (note 20)
    
    
    8
    
    
    
    10
    
    
    
    7Impairment charges on
investments (note 11)
    
    
    6
    
    
    
    16
    
    
    
    5Legal costs for major litigation
    
    
    
    
    
    
    8
    
    
    
    5Placer Dome integration costs
    
    
    12
    
    
    
    
    
    
    
    Corporate transaction costs
    
    
    7
    
    
    
    
    
    
    
    Currency translation (gains) losses
    
    
    (2
    )
    
    
    (3
    )
    
    
    1Pension and other post-retirement
benefit expense (notes 26b and 26e)1
    
    
    3
    
    
    
    8
    
    
    
    2Other items
    
    
    9
    
    
    
    2
    
    
    
    5$
    96
    
    
    $
    56
    
    
    $
    47
 1.
    
    For the year ended December 31, 2006, $4 million of pension credit that relates to active
employees at producing mines is included in cost of sales (2005: $nil), and $2 million is
included in corporate administration (2005: $nil).
 8 § Income Tax Expense (Recovery)
 For the years ended December 31
    
    2006
    
    
    2005
    
    
    2004CurrentCanada
    
    $
    13
    
    
    $
    (3
    )
    
    $
    19International
    
    
    444
    
    
    
    93
    
    
    
    24$
    457
    
    
    $
    90
    
    
    $
    43DeferredCanada
    
    $
    (117
    )
    
    $
    (15
    )
    
    $
    (26
    )International
    
    
    80
    
    
    
    22
    
    
    
    7$
    (37
    )
    
    $
    7
    
    
    $
    (19
    )Income tax expense before
elements below1
    
    $
    420
    
    
    $
    97
    
    
    $
    24Outcome of tax uncertainties
    
    
    
    
    
    
    
    
    
    
    (141
    )Change in tax status in Australia
    
    
    (31
    )
    
    
    (5
    )
    
    
    (81
    )Tax rate changes
    
    
    12
    
    
    
    
    
    
    
    Release of beginning of year
valuation allowances
    
    
    (53
    )
    
    
    (32
    )
    
    
    (5
    )Total expense (recovery)
    
    $
    348
    
    
    $
    60
    
    
    $
    (203
    )
 1.
    
    All amounts are deferred tax items except for a $21 million portion of the $141 million recovery on resolution of the Peruvian tax assessment in 2004,
which is a current tax item.
 Outcome of Tax Uncertainties
 Peruvian Tax Assessment
   94§ Notes to Consolidated Financial Statements
    
    Barrick Financial Report 2006




---



##### 



Changes in Tax Status in Australia
    Tax Rate Changes
  Release of Beginning of Year Valuation Allowances
   Reconciliation to Canadian Statutory Rate
 For the years ended December 31
    
    2006
    
    
    2005
    
    
    2004At 36.12% (2005 and 2004: 38%)
statutory rate
    
    $
    563
    
    
    $
    176
    
    
    $
    16Increase (decrease) due to:Allowances and special tax
deductions1
    
    
    (55
    )
    
    
    (92
    )
    
    
    (70
    )Impact of foreign tax rates2
    
    
    (131
    )
    
    
    (54
    )
    
    
    (4
    )Expenses not tax-deductible
    
    
    20
    
    
    
    9
    
    
    
    10Release of beginning of year
valuation allowances
    
    
    (53
    )
    
    
    (32
    )
    
    
    (5
    )Impact of changes in tax status
in Australia
    
    
    (31
    )
    
    
    (5
    )
    
    
    (81
    )Tax rate changes
    
    
    12
    
    
    
    
    
    
    
    Valuation allowances set up
against current year tax losses
    
    
    7
    
    
    
    59
    
    
    
    65Outcome of tax uncertainties
    
    
    
    
    
    
    
    
    
    
    (141
    )Mining taxes
    
    
    9
    
    
    
    1
    
    
    
    5Other items
    
    
    7
    
    
    
    (2
    )
    
    
    2Income tax expense (recovery)
    
    $
    348
    
    
    $
    60
    
    
    $
    (203
    )
 1.
    
    We are able to claim certain allowances and tax deductions unique to extractive industries
that result in a lower effective tax rate.2.
    
    We operate in multiple foreign tax jurisdictions that have tax rates different than the
Canadian statutory rate. Additionally, we have reinvested earnings and cash flow generated by
the Zaldívar mine in Chile to fund a portion of the construction cost of Pascua-Lama. The
reinvestment of these earnings and cash flow resulted in a lower tax rate applied for the
period.
 Income Tax Returns
  Barrick Financial Report 2006
    
    Notes to Consolidated Financial Statements § 95




---



##### 



9 § Earnings per share
 For the years ended December 31($ millions, except shares in millions
    
    2006
    
    
    2005
    
    
    2004and per share amounts in dollars)
    
    Basic
    
    
    Diluted
    
    
    Basic
    
    
    Diluted
    
    
    Basic
    
    
    DilutedIncome from continuing operations
    
    $
    1,209
    
    
    $
    1,209
    
    
    $
    395
    
    
    $
    395
    
    
    $
    248
    
    
    $
    248Plus: interest on convertible debentures
    
    
    
    
    
    
    4
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Income available to common shareholders and after assumed conversions
    
    
    1,209
    
    
    
    1,213
    
    
    
    395
    
    
    
    395
    
    
    
    248
    
    
    
    248Income from discontinued operations
    
    
    297
    
    
    
    297
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Income before cumulative effect of changes in accounting principles
    
    
    1,506
    
    
    
    1,510
    
    
    
    395
    
    
    
    395
    
    
    
    248
    
    
    
    248Cumulative effect of change in accounting principles
    
    
    
    
    
    
    
    
    
    
    6
    
    
    
    6
    
    
    
    
    
    
    
    Net income
    
    $
    1,506
    
    
    $
    1,510
    
    
    $
    401
    
    
    $
    401
    
    
    $
    248
    
    
    $
    248Weighted average shares outstanding
    
    
    842
    
    
    
    842
    
    
    
    536
    
    
    
    536
    
    
    
    533
    
    
    
    533Effect of dilutive securitiesStock options
    
    
    
    
    
    
    4
    
    
    
    
    
    
    
    2
    
    
    
    
    
    
    
    1Convertible debentures
    
    
    
    
    
    
    9
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    842
    
    
    
    855
    
    
    
    536
    
    
    
    538
    
    
    
    533
    
    
    
    534Earnings per shareIncome from continuing operations
    
    $
    1.44
    
    
    $
    1.42
    
    
    $
    0.74
    
    
    $
    0.73
    
    
    $
    0.47
    
    
    $
    0.46Income before cumulative effect of changes in accounting principles
    
    $
    1.79
    
    
    $
    1.77
    
    
    $
    0.74
    
    
    $
    0.73
    
    
    $
    0.47
    
    
    $
    0.46Net income
    
    $
    1.79
    
    
    $
    1.77
    
    
    $
    0.75
    
    
    $
    0.75
    
    
    $
    0.47
    
    
    $
    0.46
 Accounting Policy
  96§ Notes to Consolidated Financial Statements
    
    Barrick Financial Report 2006




---



##### 



10 § Operating Cash Flow  Other Items
 a) Reconciliation of Net Income from Continuing Operations to Cash Flow from Operating Activities
 For the years ended December 31
    
    2006
    
    
    2005
    
    
    2004Adjustments for non-cash income statement items:Currency translation (gains) losses (note 7d)
    
    
    (2
    )
    
    
    (3
    )
    
    
    1Accretion expense (note 20)
    
    
    39
    
    
    
    21
    
    
    
    18Cumulative accounting changes (note 2e)
    
    
    
    
    
    
    (6
    )
    
    
    Amortization of discount/premium on debt
securities (note 19b)
    
    
    (12
    )
    
    
    
    
    
    
    Amortization of debt issue costs (note 19b)
    
    
    12
    
    
    
    2
    
    
    
    3Stock option expense (note 25)
    
    
    27
    
    
    
    
    
    
    
    Non-hedge derivative copper options
    
    
    14
    
    
    
    
    
    
    
    Gains on sale of investments (note 7c)
    
    
    (6
    )
    
    
    (17
    )
    
    
    (6
    )Gain on Highland vend-in (note 7c)
    
    
    (51
    )
    
    
    
    
    
    
    Impairment charges on investments (note 11)
    
    
    4
    
    
    
    16
    
    
    
    5Gain on Kabanga transaction (note 7c)
    
    
    
    
    
    
    (15
    )
    
    
    Gain on sale of long-lived assets (note 7c)
    
    
    (9
    )
    
    
    (5
    )
    
    
    (36
    )Impairment of long-lived assets (note 7b)
    
    
    17
    
    
    
    
    
    
    
    139Revisions to AROs at closed mines (note 7d)
    
    
    53
    
    
    
    15
    
    
    
    22Losses on write-down of inventory
    
    
    28
    
    
    
    15
    
    
    
    9Non-controlling interests
    
    
    (1
    )
    
    
    1
    
    
    
    (2
    )Cash flow arising from changes in:Accounts receivable
    
    
    (78
    )
    
    
    4
    
    
    
    (2
    )Goods and services taxes recoverable
    
    
    (20
    )
    
    
    (16
    )
    
    
    (68
    )Inventories
    
    
    (193
    )
    
    
    (151
    )
    
    
    (51
    )Accounts payable
    
    
    29
    
    
    
    74
    
    
    
    2Accrued interest (note 19b)
    
    
    28
    
    
    
    6
    
    
    
    2Income taxes payable
    
    
    161
    
    
    
    24
    
    
    
    Derivative assets and liabilities
    
    
    97
    
    
    
    49
    
    
    
    (12
    )Other assets and liabilities
    
    
    17
    
    
    
    (56
    )
    
    
    43Settlement of AROs (note 20)
    
    
    (32
    )
    
    
    (30
    )
    
    
    (33
    )Other net operating activities
    
    $
    122
    
    
    $
    (72
    )
    
    $
    34Operating cash flow includes payments for:Income taxes
    
    $
    280
    
    
    $
    80
    
    
    $
    45Pension plan contributions (note 26a)
    
    $
    36
    
    
    $
    20
    
    
    $
    19Interest (net of amounts capitalized)
    
    $
    211
    
    
    $
    112
    
    
    $
    57
 b) Non-Cash Investing and Financing Activities
 Placer Dome Acquisition
  Fair value of assets acquired1
    
    $
    15,346Consideration paid
    
    
    10,054Liabilities assumed2
    
    $
    4,830
 1.
    
    Includes cash of $1,102 million.2.
    
    Includes debt obligations of $1,252 million (note 19b).
 Vend-in of Assets to Highland Gold (Highland)
  Sale of South Deep
  11 § Investments
 Available-for-Sale Securities
 At December 31
    
    2006
    
    
    2005GainsFair
    
    
    (losses)
    
    
    Fair
    
    
    Gains invalue
    
    
    in OCI
    
    
    value
    
    
    OCISecurities in an unrealized
gain positionBenefit plans:1Fixed-income securities
    
    $
    5
    
    
    $
    
    
    
    $
    4
    
    
    $
    Equity securities
    
    
    16
    
    
    
    2
    
    
    
    17
    
    
    
    1Other investments:NovaGold
    
    
    231
    
    
    
    13
    
    
    
    
    
    
    
    Gold Fields
    
    
    314
    
    
    
    6
    
    
    
    
    
    
    
    Celtic
    
    
    12
    
    
    
    1
    
    
    
    12
    
    
    
    Other equity securities
    
    
    65
    
    
    
    32
    
    
    
    26
    
    
    
    11Restricted cash
    
    
    
    
    
    
    
    
    
    
    3
    
    
    
    643
    
    
    
    54
    
    
    
    62
    
    
    
    12Securities in an unrealized loss
positionOther equity securities2
    
    
    3
    
    
    
    (1
    )
    
    
    
    
    
    
    $
    646
    
    
    $
    53
    
    
    $
    62
    
    
    $
    12
 1.
    
    Under various benefit plans for certain former Homestake executives, a
portfolio of marketable fixed-income and
equity securities are held in a rabbi
trust that is used to fund obligations
under the plans.2.
    
    Other equity securities in a loss position consist of investments in
various junior mining companies.
 Barrick Financial Report 2006
    
    Notes to Consolidated Financial Statements § 97




---



##### 



Purchases of Available-for-Sale Securities for Cash
 For the years ended December 31
    
    2006
    
    
    2005
    
    
    2004NovaGold
    
    $
    218
    
    
    $
    
    
    
    $
    Celtic
    
    
    
    
    
    
    30
    
    
    
    Other
    
    
    27
    
    
    
    1
    
    
    
    7$
    245
    
    
    $
    31
    
    
    $
    7
 Accounting Policy for Available-for-Sale Securities
  NovaGold Resources Inc. (NovaGold)
  Gold Fields Limited (Gold Fields)
  Celtic Resources Holdings Inc. (Celtic)
  Gains (Losses) on Investments Recorded in Earnings
 For the years ended December 31
    
    2006
    
    
    2005
    
    
    2004Gains realized on sales
    
    $
    6
    
    
    $
    17
    
    
    $
    6Impairment charges
    
    
    (4
    )
    
    
    (16
    )
    
    
    (5
    )$
    2
    
    
    $
    1
    
    
    $
    1Cash proceeds from sales
    
    $
    46
    
    
    $
    10
    
    
    $
    9
  Equity Method Investments
 At December 31
    
    2006
    
    
    2005Fair
    
    
    Carrying
    
    
    Fair
    
    
    Carryingvalue1
    
    
    amount
    
    
    value1
    
    
    amountHighland
    
    $
    207
    
    
    $
    199
    
    
    $
    134
    
    
    $
    131Diamondex
    
    
    5
    
    
    
    5
    
    
    
    6
    
    
    
    7Atacama2
    
    
    n/a
    
    
    
    123
    
    
    
    
    
    
    
    $
    327
    
    
    
    
    
    
    $
    138
 1.
    
    Based on the closing market stock price.2.
    
    As Atacama Copper Pty Limited is not a publicly traded company, there is no readily
determinable fair value.
 98§ Notes to Consolidated Financial Statements
    
    Barrick Financial Report 2006




---



##### 



Purchases of Equity Method Investment for Cash
 For the years ended December 31
    
    2006
    
    
    2005
    
    
    2004Highland
    
    $
    
    
    
    $
    50
    
    
    $
    40Diamondex
    
    
    2
    
    
    
    8
    
    
    
    Atacama
    
    
    123
    
    
    
    
    
    
    
    $
    125
    
    
    $
    58
    
    
    $
    40
 Accounting Policy for Equity Method Investments
  Highland Gold Mining Ltd. (Highland)
     Diamondex Resources Limited (Diamondex)
   Atacama Copper Pty Limited (Atacama)
  Barrick Financial Report 2006
    
    Notes to Consolidated Financial Statements § 99




---



##### 



12 § Inventories
 Gold
    
    
    CopperAt December 31
    
    2006
    
    
    2005
    
    
    2006
    
    
    2005Raw materialsOre in stockpiles
    
    $
    485
    
    
    $
    360
    
    
    $
    51
    
    
    $
    Ore on leach pads
    
    
    104
    
    
    
    34
    
    
    
    76
    
    
    
    Mine operating supplies
    
    
    284
    
    
    
    133
    
    
    
    16
    
    
    
    Work in process
    
    
    89
    
    
    
    47
    
    
    
    25
    
    
    
    Finished productsGold doré/bullion
    
    
    98
    
    
    
    32
    
    
    
    
    
    
    
    Copper cathode
    
    
    
    
    
    
    
    
    
    
    17
    
    
    
    Gold concentrate
    
    
    54
    
    
    
    47
    
    
    
    
    
    
    
    1,114
    
    
    
    653
    
    
    
    185
    
    
    
    Non-current ore in stockpiles1
    
    
    (298
    )
    
    
    (251
    )
    
    
    (70
    )
    
    
    $
    816
    
    
    $
    402
    
    
    $
    115
    
    
    $
    
 1.
    
    Ore that we do not expect to process in the next
12 months.
 Accounting Policy for Inventory
     For the years ended December 31
    
    2006
    
    
    2005
    
    
    2004Inventory impairment charges
    
    $
    28
    
    
    $
    15
    
    
    $
    9
 100§ Notes to Consolidated Financial Statements
    
    Barrick Financial Report 2006




---



##### 



Heap Leach Inventory
      Ore in Stockpiles
 At December 31
    
    2006
    
    
    2005GoldGoldstrikeOre that requires roasting
    
    $
    239
    
    
    $
    182Ore that requires autoclaving
    
    
    84
    
    
    
    98Kalgoorlie
    
    
    58
    
    
    
    53Turquoise Ridge
    
    
    14
    
    
    
    Porgera
    
    
    17
    
    
    
    Other
    
    
    73
    
    
    
    27CopperZaldívar
    
    
    51
    
    
    
    $
    536
    
    
    $
    360
  13 § Accounts Receivable, and Other Current Assets
 At December 31
    
    2006
    
    
    2005Accounts receivableAmounts due from concentrate sales
    
    $
    24
    
    
    $
    18Amounts due from copper cathode sales
    
    
    83
    
    
    
    Other receivables
    
    
    127
    
    
    
    36$
    234
    
    
    $
    54Other current assetsDerivative assets (note 19c)
    
    $
    201
    
    
    $
    128Goods and services taxes recoverable
    
    
    137
    
    
    
    101Restricted cash
    
    
    150
    
    
    
    Prepaid expenses
    
    
    32
    
    
    
    23Other
    
    
    68
    
    
    
    3$
    588
    
    
    $
    255
 Barrick Financial Report 2006
    
    Notes to Consolidated Financial Statements § 101




---



##### 



14 § Property, Plant and Equipment
 At December 31
    
    2006
    
    
    2005Assets not subject to amortizationAcquired mineral properties and capitalized mine
development costs1
    
    $
    1,621
    
    
    $
    883Amortized assetsCapitalized mineral property acquisition and mine
development costs
    
    
    6,616
    
    
    
    3,976Buildings, plant and equipment2
    
    
    7,017
    
    
    
    4,05715,254
    
    
    
    8,916Accumulated amortization3
    
    
    (6,919
    )
    
    
    (4,770
    )$
    8,335
    
    
    $
    4,146
 1.
    
    Assets in the exploration or development stage that are not subject to amortization.2.
    
    Includes $131 million (2005: $122 million) of assets under capital leases.3.
    
    Includes $41 million (2005: $18 million) of accumulated amortization for assets under capital
leases.
 a) Unamortized Assets
 Acquired Mineral Properties and Capitalized
Mine Development Costs
 Carrying amount atDecember 31, 2006Exploration projects and other land positions
    
    $
    287Value beyond proven and probable reserves at producing
mines
    
    
    401Development stage projectsRuby Hill
    
    
    49Pascua-Lama
    
    
    459Cortez Hills
    
    
    78Pueblo Viejo
    
    
    173Donlin Creek
    
    
    66Buzwagi
    
    
    108$
    1,621
 Acquisitions
  Development Stage Projects
  Interest Costs
   b) Amortized Assets
 Capitalized Mineral Property Acquisition and Mine
Development Costs
  102§ Notes to Consolidated Financial Statements
    
    Barrick Financial Report 2006




---



##### 



Buildings, Plant and Equipment
   c) Impairment Evaluations
 Producing Mines and Development Projects
   §
    
    Estimated sales proceeds from the production and sale of recoverable ounces of gold/copper
contained in proven and probable reserves;§

    
    Expected future commodity prices and currency exchange rates (considering historical and
current prices, price trends and related factors);§

    
    Expected future operating costs and capital expenditures to produce proven and probable
gold/copper reserves based on mine plans that assume current plant capacity, and exclude the
impact of inflation;§

    
    Expected cash flows associated with value beyond proven and probable reserves, which includes
the expected cash outflows required to develop and extract the value beyond proven and
probable reserves; and§

    
    Environmental remediation costs excluded from the measurement of asset retirement
obligations.
  Barrick Financial Report 2006
    
    Notes to Consolidated Financial Statements § 103




---



##### 



Exploration Projects
  d) Capital Commitments
  e) Insurance
  15 § Intangible Assets
 For the years ended December 31
    
    2006
    
    
    2005Gross carrying
    
    
    Accumulated
    
    
    Gross carrying
    
    
    Accumulatedamount
    
    
    amortization
    
    
    amount
    
    
    amortizationWater rights
    
    $
    28
    
    
    $
    
    
    
    $
    
    
    
    $
    Technology3
    
    
    17
    
    
    
    
    
    
    
    
    
    
    
    Supply contracts1
    
    
    23
    
    
    
    9
    
    
    
    
    
    
    
    Royalties2
    
    
    17
    
    
    
    1
    
    
    
    
    
    
    
    $
    85
    
    
    $
    10
    
    
    $
    
    
    
    $
    Aggregate amortization expense
    
    $
    
    
    
    $
    10
    
    
    $
    
    
    
    $
    
 For the years ended December 31
    
    2007
    
    
    2008
    
    
    2009
    
    
    2010
    
    
    2011Estimated aggregate amortization expense
    
    $
    7
    
    
    $
    5
    
    
    $
    3
    
    
    $
    1
    
    
    $
    1
 1.
    
    Supply contracts are being amortized over the weighted average contract lives of 4-8 years,
with no assumed residual value.2.
    
    Royalties are being amortized using the units of production method over the total ounces subject
to royalty payments under the agreement.3.
    
    The acquired technology will be used at the Pueblo Viejo project, which has been estimated to
start up at a date later than 2010. The amount will be amortized
using the units-of-production method over the estimated proven and probable reserves of the mine,
with no assumed residual value.
 16 § Goodwill
 At January 1, 2006
    
    $
    Additions
    
    
    6,506Disposals
    
    
    651At December 31, 2006
    
    $
    5,855
  104§ Notes to Consolidated Financial Statements
    
    Barrick Financial Report 2006




---



##### 



17 § Other Assets
 At December 31
    
    2006
    
    
    2005Non-current ore in stockpiles
    
    $
    368
    
    
    $
    251Derivative assets (note 19d)
    
    
    209
    
    
    
    177Goods and services taxes recoverable
    
    
    48
    
    
    
    46Deferred income tax assets (note 22)
    
    
    528
    
    
    
    141Debt issue costs
    
    
    36
    
    
    
    35Deferred share-based compensation (note 25b)
    
    
    36
    
    
    
    13Other
    
    
    114
    
    
    
    105$
    1,339
    
    
    $
    768
 Debt Issue Costs
  18 § Other Current Liabilities
 At December 31
    
    2006
    
    
    2005Asset retirement obligations (note 20)
    
    $
    50
    
    
    $
    37Derivative liabilities (note 19d)
    
    
    82
    
    
    
    42Post-retirement benefits (note 26)
    
    
    11
    
    
    
    6Deferred revenue
    
    
    
    
    
    
    8Income taxes payable
    
    
    159
    
    
    
    Other
    
    
    1
    
    
    
    1$
    303
    
    
    $
    94
 19 § Financial Instruments
  a) Cash and Equivalents
  Barrick Financial Report 2006
    
    Notes to Consolidated Financial Statements § 105




---



##### 



b) Long-Term Debt 6
 2006
    
    
    2005
    
    
    2004Assumedon acqui-At
    
    
    
    
    
    
    Repay-
    
    
    Amorti-
    
    
    sition of
    
    
    At
    
    
    
    
    
    
    Repay-
    
    
    Amorti-
    
    
    At
    
    
    
    
    
    
    Repay-
    
    
    Amorti-Dec. 31
    
    
    Proceeds
    
    
    ments
    
    
    zation5
    
    
    Placer Dome
    
    
    Dec. 31
    
    
    Proceeds
    
    
    ments
    
    
    zation5
    
    
    Dec. 31
    
    
    Proceeds
    
    
    ments
    
    
    zation57.50% debentures1
    
    $
    498
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    490
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    495
    
    
    $
    
    
    
    $
    
    
    
    $
    5.80%/4.875% note
    
    $
    745
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    745
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    745
    
    
    
    745
    
    
    
    
    
    
    
    Veladero financing
    
    
    220
    
    
    
    13
    
    
    
    30
    
    
    
    
    
    
    
    
    
    
    
    237
    
    
    
    39
    
    
    
    
    
    
    
    
    
    
    
    198
    
    
    
    198
    
    
    
    
    
    
    
    Bulyanhulu financing
    
    
    85
    
    
    
    
    
    
    
    34
    
    
    
    
    
    
    
    
    
    
    
    119
    
    
    
    
    
    
    
    31
    
    
    
    
    
    
    
    150
    
    
    
    
    
    
    
    24
    
    
    
    Other debt2
    
    
    1,024
    
    
    
    50
    
    
    
    
    
    
    
    6
    
    
    
    867
    
    
    
    113
    
    
    
    50
    
    
    
    
    
    
    
    
    
    
    
    63
    
    
    
    
    
    
    
    17
    
    
    
    Copper-linked notes
    
    
    908
    
    
    
    995
    
    
    
    87
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    US dollar notes
    
    
    87
    
    
    
    87
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Senior convertible
debentures
    
    
    296
    
    
    
    
    
    
    
    
    
    
    
    4
    
    
    
    300
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Capital leases
    
    
    94
    
    
    
    7
    
    
    
    16
    
    
    
    
    
    
    
    6
    
    
    
    97
    
    
    
    90
    
    
    
    28
    
    
    
    
    
    
    
    35
    
    
    
    30
    
    
    
    
    
    
    
    Series B Preferred
Securities
    
    
    
    
    
    
    
    
    
    
    77
    
    
    
    2
    
    
    
    79
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    First credit facility3
    
    
    
    
    
    
    1,000
    
    
    
    1,000
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,957
    
    
    
    2,152
    
    
    
    1,244
    
    
    
    12
    
    
    
    1,252
    
    
    
    1,801
    
    
    
    179
    
    
    
    59
    
    
    
    
    
    
    
    1,686
    
    
    
    973
    
    
    
    41
    
    
    
    Less: current portion
    
    
    (713
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (80
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (31
    )
    
    
    
    
    
    
    
    
    
    
    $
    3,244
    
    
    $
    2,152
    
    
    $
    1,244
    
    
    $
    12
    
    
    $
    1,252
    
    
    $
    1,721
    
    
    $
    179
    
    
    $
    59
    
    
    $
    
    
    
    $
    1,655
    
    
    $
    973
    
    
    $
    41
    
    
    $
    Short-term debtDemand financing
facility
    
    
    150
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    150
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Second credit facility4
    
    
    
    
    
    
    37
    
    
    
    337
    
    
    
    
    
    
    
    300
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    150
    
    
    $
    37
    
    
    $
    337
    
    
    $
    
    
    
    $
    450
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
 1.
    
    The 71/2% debentures have a principal amount of $500 million and
mature on May 1, 2007. The debentures have been designated in a fair value hedge relationship
and consequently the carrying amount represents the estimated fair value.2.
    
    The debt has an aggregate principal amount of $1,024 million, of which $163 million is
subject to floating interest rates and $861 million is subject to fixed interest
rates ranging from 6.37% to 8.05%. The notes mature at various times between 2007 and 2035.3.
    
    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
$1.5 billion or the equivalent amount in Canadian currency. The credit facility, which is
unsecured, has an interest rate of Libor plus 0.25% to 0.35% on drawn down
amounts, and a commitment rate of 0.07% to 0.08% on undrawn amounts. We increased the limit of
this facility from $1 billion in August 2006. The facility currently
matures in 2011.4.
    
    During third quarter 2006, we terminated a second credit facility which consisted of unused
bank lines of credit of $850 million with an international consortium
of banks.5.
    
    Amortization of debt discount/premium.6.
    
    The agreements which govern our long-term debt each contain various provisions which are not
summarized herein. In certain cases, these provisions allow Barrick
to, at its option, redeem indebtedness prior to maturity at specified prices and also may permit
redemption of debt by Barrick upon the occurrence of certain specified changes in tax legislation.
 Series B Preferred Securities
  Senior Convertible Debentures
  106§ Notes to Consolidated Financial Statements
    
    Barrick Financial Report 2006




---



##### 



Demand Financing Facility
  Copper-Linked Notes/US Dollar Notes
  5.80%/4.875% Notes
  Veladero Financing
  Barrick Financial Report 2006
    
    Notes to Consolidated Financial Statements § 107




---



##### 



For the years ended December 31Interest
    
    2006
    
    
    2005
    
    
    2004Interest
    
    
    Effective
    
    
    Interest
    
    
    Effective
    
    
    Interest
    
    
    Effectivecost
    
    
    rate1
    
    
    cost
    
    
    rate1
    
    
    cost
    
    
    rate17.50% debentures
    
    $
    49
    
    
    
    9.8
    %
    
    $
    41
    
    
    
    8.2
    %
    
    $
    31
    
    
    
    6.1
    %5.80%/4.875% notes
    
    
    41
    
    
    
    5.5
    %
    
    
    42
    
    
    
    5.6
    %
    
    
    5
    
    
    
    5.4
    %Veladero financing
    
    
    25
    
    
    
    10.2
    %
    
    
    20
    
    
    
    8.6
    %
    
    
    4
    
    
    
    7.5
    %Bulyanhulu financing
    
    
    6
    
    
    
    5.5
    %
    
    
    10
    
    
    
    7.5
    %
    
    
    14
    
    
    
    8.0
    %Other debt
    
    
    53
    
    
    
    5.4
    %
    
    
    3
    
    
    
    4.1
    %
    
    
    1
    
    
    
    1.2
    %Copper-linked notes/US dollar notes
    
    
    13
    
    
    
    5.8
    %
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Senior convertible debentures
    
    
    6
    
    
    
    2.0
    %
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Capital leases
    
    
    6
    
    
    
    6.7
    %
    
    
    6
    
    
    
    6.2
    %
    
    
    
    
    
    
    Series B Preferred Securities
    
    
    3
    
    
    
    4.4
    %
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Demand financing facility
    
    
    12
    
    
    
    8.8
    %
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    First credit facility
    
    
    29
    
    
    
    7.4
    %
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Second credit facility
    
    
    6
    
    
    
    5.0
    %
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other interest
    
    
    2
    
    
    
    
    
    
    
    3
    
    
    
    
    
    
    
    5251
    
    
    
    
    
    
    
    125
    
    
    
    
    
    
    
    60Less: interest allocated to discontinued operations
    
    
    (23
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Less: interest capitalized
    
    
    (102
    )
    
    
    
    
    
    
    (118
    )
    
    
    
    
    
    
    (41
    )$
    126
    
    
    
    
    
    
    $
    7
    
    
    
    
    
    
    $
    19Cash interest paid
    
    $
    211
    
    
    
    
    
    
    $
    112
    
    
    
    
    
    
    $
    57Amortization of debt issue costs
    
    
    12
    
    
    
    
    
    
    
    2
    
    
    
    
    
    
    
    3Amortization of discount/premium
    
    
    (12
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Losses (gains) on interest rate hedges
    
    
    12
    
    
    
    
    
    
    
    5
    
    
    
    
    
    
    
    (2
    )Increase in interest accruals
    
    
    28
    
    
    
    
    
    
    
    6
    
    
    
    
    
    
    
    2Interest cost
    
    $
    251
    
    
    
    
    
    
    $
    125
    
    
    
    
    
    
    $
    60
 1.
    
    The effective rate includes the stated interest rate under the debt agreement,
amortization of debt issue costs and debt discount/premium and the impact of interest rate
contracts designated in a hedging relationship with long-term debt.
 Scheduled Debt Repayments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2011 and2007
    
    
    2008
    
    
    2009
    
    
    2010
    
    
    thereafter7.50% debentures
    
    $
    500
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    5.80%/4.875% notes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    750Veladero financing
    
    
    58
    
    
    
    48
    
    
    
    53
    
    
    
    30
    
    
    
    32Bulyanhulu financing
    
    
    34
    
    
    
    34
    
    
    
    17
    
    
    
    
    
    
    
    Copper-linked notes/US dollar notes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,000Other debt
    
    
    100
    
    
    
    
    
    
    
    16
    
    
    
    7
    
    
    
    836Senior convertible debentures
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    230Demand financing facility
    
    
    45
    
    
    
    15
    
    
    
    15
    
    
    
    15
    
    
    
    60$
    737
    
    
    $
    97
    
    
    $
    101
    
    
    $
    52
    
    
    $
    2,908Minimum annual payments under capital leases
    
    $
    20
    
    
    $
    16
    
    
    $
    16
    
    
    $
    16
    
    
    $
    21
 108§ Notes to Consolidated Financial Statements
    
    Barrick Financial Report 2006




---



##### 



c) Use of Derivative Instruments (Derivatives) in Risk Management
  Item
    
    Impacted by§   Sales
    
    §   Prices of gold and copper§    Cost of sales§   Consumption of diesel fuel and
propane
    
    §   Prices of diesel fuel,
propane and natural gas§   Local currency denominated expenditures
    

§   Currency
exchange rates US
dollar versus A$ and C$§   Administration, exploration and
business development costs in local
currencies
    

§   Currency
exchange rates US
dollar versus A$, C$, and ZAR§   Capital expenditures in local currencies
    

§   Currency
exchange rates US
dollar versus A$ and C$§   Interest earned on cash
    
    §   US dollar interest rates§   Fair value of fixed-rate debt
    
    §   US dollar interest rates
    Accounting Policy for Derivatives
   §
    
    a fair value hedge relationship with a recognized asset
or liability; or§
    
    a cash flow hedge relationship with either a forecasted
transaction or the variable future cash flows arising
from a recognized asset or liability.
  Barrick Financial Report 2006
    
    Notes to Consolidated Financial Statements § 109




---



##### 



§
    
    a derivative is settled;§
    
    it is no longer highly probable that a forecasted transaction will occur; or§
    
    we de-designate a hedging relationship.
   §
    
    Fair value hedges: recorded in earnings as well as changes
in fair value of the hedged item.§
    
    Cash flow hedges: recorded in OCI until earnings are
affected by the hedged item, except for any hedge ineffectiveness which is recorded in earnings immediately.§
    
    Non-hedge derivatives: recorded in earnings.
 d) Derivative Instruments (Derivatives) Placer Dome Acquisition
  Notional
    
    
    Fair value atamount
    
    
    January 20, 2006Gold sold forward contracts
(millions of ounces)
    
    
    7.0
    
    
    $
    (1,544
    )Gold bought forward contracts (millions
of ounces)
    
    
    0.3
    
    
    
    14Gold Options (millions of ounces)
    
    
    1.0
    
    
    
    (188
    )Silver contracts (millions of ounces)
    
    
    6.5
    
    
    
    (11
    )A$ currency contracts (A$ millions)
    
    
    133
    
    
    
    22$
    (1,707
    )
   110§ Notes to Consolidated Financial Statements
    
    Barrick Financial Report 2006




---



##### 



Summary of Derivatives at December 31, 20061
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Accountingclassification byNotional amount by term to maturity
    
    
    notional amount
    
    
    Fair valueWithin
    
    
    2 to 5
    
    
    Over 5
    
    
    
    
    
    
    Cash flow
    
    
    Fair value
    
    
    Non-1 year
    
    
    years
    
    
    years
    
    
    Total
    
    
    hedge
    
    
    hedge
    
    
    hedgeUS dollar interest rate contractsReceive-fixed swaps (millions)
    
    $
    500
    
    
    $
    50
    
    
    $
    
    
    
    $
    550
    
    
    $
    
    
    
    $
    500
    
    
    $
    50
    
    
    $
    (5
    )Pay-fixed swaps (millions)
    
    
    
    
    
    
    125
    
    
    
    
    
    
    
    125
    
    
    
    
    
    
    
    
    
    
    
    125
    
    
    
    (10
    )Net notional position
    
    $
    500
    
    
    $
    (75
    )
    
    $
    
    
    
    $
    425
    
    
    $
    
    
    
    $
    500
    
    
    $
    (75
    )
    
    $
    (15
    )Currency contractsC$:US$ contracts (C$ millions)
    
    C$
    310
    
    
    C$
    276
    
    
    C$
    
    
    
    C$
    586
    
    
    C$
    586
    
    
    C$
    
    
    
    C$
    
    2
    
    $
    34A$:US$ contracts (A$ millions)
    
    A$
    1, 100
    
    
    A$
    1, 767
    
    
    A$
    
    
    
    A$
    2,867
    
    
    A$
    2,863
    
    
    A$
    
    
    
    A$
    4
    
    
    
    142ZAR:US$ contracts (ZAR millions)
    
    ZAR
    46
    
    
    ZAR
    
    
    
    ZAR
    
    
    
    ZAR
    46
    
    
    ZAR
    46
    
    
    ZAR
    
    
    
    ZAR
    
    
    
    
    Commodity contractsGold sold forward contracts (thousands of
ounces)
    
    
    178
    
    
    
    364
    
    
    
    
    
    
    
    542
    
    
    
    
    
    
    
    
    
    
    
    542
    
    
    $
    (184
    )Gold bought forward contracts
(thousands of ounces)
    
    
    542
    
    
    
    
    
    
    
    
    
    
    
    542
    
    
    
    
    
    
    
    
    
    
    
    542
    
    
    
    23Copper purchased put option contracts
(millions of pounds)
    
    
    32
    
    
    
    
    
    
    
    
    
    
    
    32
    
    
    
    15
    
    
    
    
    
    
    
    17
    
    
    
    Copper sold forward contracts (millions
of pounds)
    
    
    129
    
    
    
    156
    
    
    
    
    
    
    
    285
    
    
    
    285
    
    
    
    
    
    
    
    
    
    
    
    81WTI forward and option contracts
(thousands of barrels)
    
    
    991
    
    
    
    2,281
    
    
    
    920
    
    
    
    4,192
    
    
    
    3,754
    
    
    
    
    
    
    
    438
    
    
    
    30Propane bought forward contracts
(millions of gallons)
    
    
    18
    
    
    
    
    
    
    
    
    
    
    
    18
    
    
    
    18
    
    
    
    
    
    
    
    
    
    
    
    (1
    )Natural gas bought forward contracts
(millions of Btu)
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    
 1.
    
    Excludes gold sales contracts (see note 5), gold lease rate swaps (see note 5), Celtic
Resources & Midway Gold share purchase warrants (see note 11).2.
    
    C$23 million of non-hedge currency contracts were economically closed out by entering into
offsetting positions, albeit with differing counterparties.
 US Dollar Interest Rate Contracts
 Fair Value Hedges
 1 2
 Non-hedge Contracts
  Currency Contracts
 Cash Flow Hedges
  Barrick Financial Report 2006
    
    Notes to Consolidated Financial Statements § 111




---



##### 



Commodity Contracts
 Cash Flow Hedges
    Non-hedge Contracts
  Derivative Assets and Liabilities
 2006
    
    
    2005At January 1
    
    $
    204
    
    
    $
    359Acquired with Placer Dome
    
    
    (1,707
    )
    
    
    Derivatives settled (inflow) outflow
    
    
    
    
    
    
    Operating activities
    
    
    (184
    )
    
    
    (183
    )Financing activities
    
    
    1,840
    
    
    
    Change in fair value of:Non-hedge derivatives
    
    
    (3
    )
    
    
    4Cash flow hedgesEffective portion
    
    
    17
    
    
    
    23Ineffective portion
    
    
    3
    
    
    
    1Share purchase warrants
    
    
    
    
    
    
    5Fair value hedges
    
    
    8
    
    
    
    (5
    )At December 31
    
    $
    178
    
    
    $
    204
    1Classification:Other current assets
    
    $
    201
    
    
    $
    128Other assets
    
    
    209
    
    
    
    177Other current liabilities
    
    
    (82
    )
    
    
    (42
    )Other long-term obligations
    
    
    (150
    )
    
    
    (59
    )$
    178
    
    
    $
    204Derivative liabilities assumed in Placer acquisition
    
    
    (160
    )
    
    
    Other derivative assets and liabilities
    
    
    338
    
    
    
    204$
    178
    
    
    $
    204
 1.
    
    Derivative assets and liabilities are presented net by offsetting related amounts due
to/from counterparties if the conditions of FIN No. 39, Offsetting of Amounts Related to
Certain Contracts, are met. Amounts receivable from counterparties netted against derivative
liabilities totaled $5 million at December 31, 2006.
 112§ Notes to Consolidated Financial Statements
    
    Barrick Financial Report 2006




---



##### 



Non-hedge Derivative Gains (Losses) 1
 For the years ended December 31
    
    2006
    
    
    2005
    
    
    2004Non-hedge derivativesCommodity contracts
    
    $
    (11
    )
    
    $
    4
    
    
    $
    0
    )Currency contracts
    
    
    
    
    
    
    3
    
    
    
    (4
    )Interest rate contracts
    
    
    8
    
    
    
    2
    
    
    
    16Share purchase warrants
    
    
    
    
    
    
    (5
    )
    
    
    (3
    )
    
    
    4
    
    
    
    3Hedge ineffectivenessOngoing hedge inefficiency
    
    
    3
    
    
    
    1
    
    
    
    Due to changes in timing
of hedged items
    
    
    
    
    
    
    1
    
    
    
    2$
    
    
    
    $
    6
    
    
    $
    5
 1.
    
    Non-hedge derivative gains (losses) are
classified as a component of other (income)
expense.
 Cash Flow Hedge Gains (Losses) in OCI
 CommodityPrice hedges
    
    
    Currency hedges
    
    
    Interest rate hedgesGold/
    
    
    
    
    
    
    
    
    
    
    Operating
    
    
    Administration
    
    
    Capital
    
    
    Cash
    
    
    Long-termsilver
    
    
    Copper
    
    
    Fuel
    
    
    costs
    
    
    costs
    
    
    expenditures
    
    
    balances
    
    
    debt
    
    
    TotalAt December 31, 2003
    
    $
    
    
    
    $
    
    
    
    $
    (1
    )
    
    $
    219
    
    
    $
    25
    
    
    $
    36
    
    
    $
    17
    
    
    $
    (8
    )
    
    $
    288Effective portion of change in
fair value of hedging instruments
    
    
    
    
    
    
    
    
    
    
    7
    
    
    
    117
    
    
    
    19
    
    
    
    19
    
    
    
    5
    
    
    
    (20
    )
    
    
    147Transfers to earnings:On recording hedged items in earnings
    
    
    
    
    
    
    
    
    
    
    (4
    )
    
    
    (96
    )
    
    
    (11
    )
    
    
    (5
    )
    
    
    (19
    )
    
    
    3
    
    
    
    (132
    )Hedge ineffectiveness due to changes
in timing of hedged items
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2
    )1
    
    
    
    
    
    
    
    
    
    
    (2
    )At December 31, 2004
    
    
    
    
    
    
    
    
    
    
    2
    
    
    
    240
    
    
    
    33
    
    
    
    48
    
    
    
    3
    
    
    
    (25
    )
    
    
    301Effective portion of change in fair value
of hedging instruments
    
    
    
    
    
    
    
    
    
    
    46
    
    
    
    (38
    )
    
    
    13
    
    
    
    (4
    )
    
    
    1
    
    
    
    5
    
    
    
    23Transfers to earnings:On recording hedged items in earnings
    
    
    
    
    
    
    
    
    
    
    (10
    )
    
    
    (100
    )
    
    
    (16
    )
    
    
    (4
    )
    
    
    (6
    )
    
    
    2
    
    
    
    (134
    )Hedge ineffectiveness due to
changes in timing of hedged items
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1
    )1
    
    
    
    
    
    
    
    
    
    
    (1
    )At December 31, 2005
    
    
    
    
    
    
    
    
    
    
    38
    
    
    
    102
    
    
    
    30
    
    
    
    39
    
    
    
    (2
    )
    
    
    (18
    )
    
    
    189Effective portion of change in fair value
of hedging instruments
    
    
    (148
    )
    
    
    29
    
    
    
    (1
    )
    
    
    137
    
    
    
    (2
    )
    
    
    4
    
    
    
    (2
    )
    
    
    
    
    
    
    17Transfers to earnings:On recording hedged items in earnings
    
    
    165
    
    
    
    28
    
    
    
    (16
    )
    
    
    (84
    )
    
    
    (14
    )
    
    
    (4
    )1
    
    
    1
    
    
    
    1
    
    
    
    77Hedge ineffectiveness due to changes
in timing of hedged items
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    At December 31, 2006
    
    $
    17
    
    
    $
    57
    
    
    $
    21
    
    
    $
    155
    
    
    $
    14
    
    
    $
    39
    
    
    $
    (3
    )
    
    $
    (17
    )
    
    $
    283
 Gold
    
    
    Copper
    
    
    Cost of
    
    
    Cost of
    
    
    
    
    
    
    
    
    
    
    Interest
    
    
    InterestHedge gains/losses classified within
    
    sales
    
    
    sales
    
    
    sales
    
    
    sales
    
    
    Administration
    
    
    Amortization
    
    
    expense
    
    
    costPortion of hedge gain (loss) expected to
affect 2007 earnings2
    
    $
    2
    
    
    $
    19
    
    
    $
    12
    
    
    $
    102
    
    
    $
    10
    
    
    $
    2
    
    
    $
    (3
    )
    
    $
    (1
    )
    
    $
    143
 1.
    
    On determining that certain forecasted capital expenditures were no longer likely to occur
within two months of the originally specified time frame.2.
    
    Based on the fair value of hedge contracts at December 31, 2006.
 Barrick Financial Report 2006
    
    Notes to Consolidated Financial Statements § 113




---



##### 



e) Fair Value of Financial Instruments
  Fair Value Information
 At December 31
    
    2006
    
    
    2005Estimated
    
    
    
    
    
    
    EstimatedCarrying
    
    
    fair
    
    
    Carrying
    
    
    fairamount
    
    
    value
    
    
    amount
    
    
    valueFinancial assetsCash and equivalents1
    
    $
    3,043
    
    
    $
    3,043
    
    
    $
    1,037
    
    
    $
    1,037Accounts receivable1
    
    
    234
    
    
    
    234
    
    
    
    54
    
    
    
    54Available-for-sale securities2
    
    
    646
    
    
    
    646
    
    
    
    62
    
    
    
    62Equity-method investments3
    
    
    204
    
    
    
    212
    
    
    
    138
    
    
    
    140Derivative assets4
    
    
    410
    
    
    
    410
    
    
    
    305
    
    
    
    305$
    4,537
    
    
    $
    4,545
    
    
    $
    1,596
    
    
    $
    1,598Financial liabilitiesAccounts payable1
    
    $
    686
    
    
    $
    686
    
    
    $
    386
    
    
    $
    386Long-term debt5
    
    
    3,957
    
    
    
    3,897
    
    
    
    1,801
    
    
    
    1,827Derivative liabilities4
    
    
    232
    
    
    
    232
    
    
    
    101
    
    
    
    101Restricted share units6
    
    
    42
    
    
    
    42
    
    
    
    17
    
    
    
    17Deferred share units6
    
    
    2
    
    
    
    2
    
    
    
    1
    
    
    
    1$
    4,919
    
    
    $
    4,859
    
    
    $
    2,306
    
    
    $
    2,332
 1.
    
    Recorded at cost. Fair value approximates the carrying amounts due to the
short-term nature and generally negligible credit losses.2.
    
    Recorded at fair value. Quoted market prices are used to determine fair value.3.
    
    Recorded at cost, adjusted for our share of income/loss and dividends of
equity investees. Excludes the investment in Atacama Pty for which
there is
no readily determinable fair value.4.
    
    Recorded at fair value based on internal valuation models that reflect forward
market commodity prices, currency exchange rates and interest rates, and a
discount factor that is based on market US dollar interest rates. If a forward
market does not exist, we obtain broker-dealer quotations. Valuations
assume all counterparties have an AA credit rating.5.
    
    Long-term debt is generally recorded at cost except for obligations that are
designated in a fair-value hedge relationship, which are recorded at fair value
in periods where a hedge relationship exists. The fair value of long-term debt
is calculated by discounting the future cash flows under a debt obligation by
a discount factor that is based on US dollar market interest rates adjusted for
our credit quality.6.
    
    Recorded at fair value based on our period end closing market share price.
 f) Credit Risk
   §
    
    entering into derivatives with high credit-quality
counterparties;§
    
    limiting the amount of exposure to each counterparty;
and§
    
    monitoring the financial condition of counterparties.
  Credit Quality of Financial Assets
 At December 31, 2006
    
    S&P Credit ratingAA- or
    
    
    A- orhigher
    
    
    higher
    
    
    B to BBB
    
    
    TotalCash and equivalents
    
    $
    3,069
    
    
    $
    21
    
    
    $
    4
    
    
    $
    3,094Derivatives1
    
    
    291
    
    
    
    88
    
    
    
    
    
    
    
    379Accounts receivable
    
    
    
    
    
    
    
    
    
    
    234
    
    
    
    234$
    3,360
    
    
    $
    109
    
    
    $
    238
    
    
    $
    3,707Number of counterparties2
    
    
    17
    
    
    
    9
    
    
    
    Largest counterparty (%)
    
    
    34
    %
    
    
    65
    %
    
    
    
 Concentrations of Credit Risk
 OtherUnited
    
    
    
    
    
    
    Inter-At December 31, 2006
    
    States
    
    
    Canada
    
    
    national
    
    
    TotalCash and equivalents
    
    $
    2,479
    
    
    $
    513
    
    
    $
    102
    
    
    $
    3,094Derivatives1
    
    
    159
    
    
    
    136
    
    
    
    84
    
    
    
    379Accounts receivable
    
    
    23
    
    
    
    27
    
    
    
    184
    
    
    
    234$
    2,661
    
    
    $
    676
    
    
    $
    370
    
    
    $
    3,707
 1.
    
    The amounts presented reflect the net credit exposure after considering the
effect of master netting agreements.2.
    
    For cash and equivalents and derivatives combined.
 114§ Notes to Consolidated Financial Statements
    
    Barrick Financial Report 2006




---



##### 



g) Risks Relating to the Use of Derivatives
   20 § Asset Retirement Obligations
 Asset Retirement Obligations (AROs)
 2006
    
    
    2005At January 1
    
    $
    446
    
    
    $
    367AROs acquired with Placer Dome
    
    
    387
    
    
    
    AROs arising in the period
    
    
    27
    
    
    
    47Impact of revisions to expected cash flowsRevisions to carrying amount of assets
    
    
    (7
    )
    
    
    29Recorded in earnings1
    
    
    53
    
    
    
    15SettlementsCash payments
    
    
    (32
    )
    
    
    (30
    )Settlement gains
    
    
    (4
    )
    
    
    (3
    )AROs
reclassified under Liabilities of
discontinued operations
    
    
    (16
    )
    
    
    Accretion
    
    
    39
    
    
    
    21At December 31
    
    
    893
    
    
    
    446Current portion
    
    
    (50
    )
    
    
    (37
    )$
    843
    
    
    $
    409
 1.
    
    In 2006, we recognized an increase of $37 million for a change in estimate of the ARO at
the Nickel Plate property in British Columbia, Canada. The adjustment was made on receipt of
an environmental study that indicated a requirement to treat ground water for an extended
period of time. The increase was recorded as a component of other expense (note 7d).
  Barrick Financial Report 2006
    
    Notes to Consolidated Financial Statements § 115




---



##### 



21 § Other Non-current Liabilities
 At December 31
    
    2006
    
    
    2005Pension benefits (note 26)
    
    $
    85
    
    
    $
    54Other post-retirement benefits (note 26)
    
    
    33
    
    
    
    28Derivative liabilities (note 19d)
    
    
    150
    
    
    
    59Restricted share units (note 25b)
    
    
    42
    
    
    
    16Other
    
    
    126
    
    
    
    51$
    436
    
    
    $
    208
 22 § Deferred Income Taxes
 Recognition and Measurement
   Sources of Deferred Income Tax Assets and Liabilities
 At December 31
    
    2006
    
    
    2005Deferred tax assetsTax loss carry forwards
    
    $
    798
    
    
    $
    252Capital tax loss carry forwards
    
    
    30
    
    
    
    42Alternative minimum tax (AMT) credits
    
    
    198
    
    
    
    135Asset retirement obligations
    
    
    303
    
    
    
    175Property, plant and equipment
    
    
    333
    
    
    
    297Inventory
    
    
    95
    
    
    
    57Post-retirement benefit obligations
    
    
    40
    
    
    
    5Other
    
    
    3
    
    
    
    111,800
    
    
    
    974Valuation allowances
    
    
    (658
    )
    
    
    (656
    )Net deferred tax assets
    
    
    1,142
    
    
    
    318Deferred tax liabilitiesProperty, plant and equipment
    
    
    (1,377
    )
    
    
    (230
    )Derivative instruments
    
    
    (9
    )
    
    
    (61
    )Other
    
    
    (26
    )
    
    
    $
    (270
    )
    
    $
    27Classification:Non-current assets (note 17)
    
    $
    528
    
    
    $
    141Non-current liabilities
    
    
    (798
    )
    
    
    (114
    )$
    (270
    )
    
    $
    27
 Expiry Dates of Tax Losses and AMT Credits
 Noexpiry2007
    
    
    2008
    
    
    2009
    
    
    2010
    
    
    2011 +
    
    
    date
    
    
    TotalTax losses1Canada
    
    $
    5
    
    
    $
    3
    
    
    $
    5
    
    
    $
    1
    
    
    $
    1,490
    
    
    $
    
    
    
    $
    1,504Australia
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    241
    
    
    
    241Barbados
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    619
    
    
    
    
    
    
    
    619Chile
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    706
    
    
    
    706Tanzania
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    98
    
    
    
    98U.S.
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    162
    
    
    
    
    
    
    
    162Other
    
    
    
    
    
    
    
    
    
    
    5
    
    
    
    6
    
    
    
    24
    
    
    
    17
    
    
    
    52$
    5
    
    
    $
    3
    
    
    $
    10
    
    
    $
    7
    
    
    $
    2,295
    
    
    $
    1,062
    
    
    $
    3,382AMT credits2
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    198
    
    
    $
    198
 1.
    
    Represents the gross amount of tax loss carry forwards translated at closing
exchange rates at December 31, 2006.2.
    
    Represents the amounts deductible against future taxes payable in years
when taxes payable exceed minimum tax as defined by United States tax
legislation.
 116§ Notes to Consolidated Financial Statements
    
    Barrick Financial Report 2006




---



##### 



Valuation Allowances
  §
    
    historic and expected future levels of future taxable income;§
    
    opportunities to implement tax plans that affect
whether tax assets can be realized; and§
    
    the nature, amount and expected timing of reversal
of taxable temporary differences.
    Source of Changes in Deferred Tax Balances
 For the years ended December 31
    
    2006
    
    
    2005
    
    
    2004Temporary differencesProperty, plant and equipment
    
    $
    (1,111
    )
    
    $
    30
    
    
    $
    (86
    )Asset retirement obligations
    
    
    128
    
    
    
    (69
    )
    
    
    (21
    )Tax loss carry forwards
    
    
    546
    
    
    
    38
    
    
    
    93Derivatives
    
    
    52
    
    
    
    (34
    )
    
    
    (4
    )Other
    
    
    (12
    )
    
    
    8
    
    
    
    (5
    )$
    (397
    )
    
    $
    (27
    )
    
    $
    (23
    )Adjustment to deferred tax balances
due to change in tax status1
    
    
    31
    
    
    
    (5
    )
    
    
    (81
    )Tax rate changes
    
    
    (12
    )
    
    
    
    
    
    
    Release of beginning-of-year
valuation allowances
    
    
    53
    
    
    
    (32
    )
    
    
    (5
    )Outcome of tax uncertainties
    
    
    
    
    
    
    
    
    
    
    (120
    )$
    (325
    )
    
    $
    (64
    )
    
    $
    (229
    )Intraperiod allocation to:Income before income taxes
    
    $
    109
    
    
    $
    (30
    )
    
    $
    (225
    )Acquisition of Placer Dome
    
    
    (432
    )
    
    
    
    
    
    
    OCI
    
    
    (2
    )
    
    
    (34
    )
    
    
    (4
    )Balance sheet reclassifications
    
    
    28
    
    
    
    (5
    )
    
    
    13$
    (297
    )
    
    $
    (69
    )
    
    $
    (216
    )
 1.
    
    Relates to changes in tax status in Australia (note 8).
 23 § Capital Stock
 a) Common Shares
    b) Exchangeable Shares
  Barrick Financial Report 2006
    
    Notes to Consolidated Financial Statements § 117




---



##### 



Summarized Financial Information for BGI
 For the years ended December 31
    
    2006
    
    
    2005
    
    
    2004Total revenues and other income
    
    $
    233
    
    
    $
    181
    
    
    $
    216Less: costs and expenses1
    
    
    215
    
    
    
    186
    
    
    
    287Income (loss) before taxes
    
    $
    18
    
    
    $
    (5
    )
    
    $
    (71
    )Net income (loss)
    
    $
    33
    
    
    $
    21
    
    
    $
    (41
    )
 At December 31
    
    2006
    
    
    2005AssetsCurrent assets
    
    $
    112
    
    
    $
    119Non-current assets
    
    
    50
    
    
    
    88$
    162
    
    
    $
    207Liabilities and shareholders equityOther current liabilities
    
    
    25
    
    
    
    25Intercompany notes payable
    
    
    387
    
    
    
    390Other long-term liabilities
    
    
    80
    
    
    
    55Deferred income tax liabilities
    
    
    (15
    )
    
    
    Deficit
    
    
    (315
    )
    
    
    (263
    )$
    162
    
    
    $
    207
  24 § Other Comprehensive Income (Loss) (OCI)
 2006
    
    
    2005
    
    
    2004Accumulated OCI at January 1Cash flow hedge gains, net of tax of $61, $95, $99
    
    $
    128
    
    
    $
    206
    
    
    $
    189Investments, net of tax of $nil, $nil, $nil
    
    
    12
    
    
    
    21
    
    
    
    25Currency translation adjustments, net of tax of $nil, $nil, $nil
    
    
    (143
    )
    
    
    (146
    )
    
    
    (147
    )Additional pension liability, net of tax of $nil, $nil, $nil
    
    
    (28
    )
    
    
    (12
    )
    
    
    (7
    )$
    (31
    )
    
    $
    69
    
    
    $
    60Other comprehensive income (loss) for the period:Changes in fair value of cash flow hedges
    
    
    17
    
    
    
    23
    
    
    
    147Changes in fair value of investments
    
    
    43
    
    
    
    (8
    )
    
    
    (3
    )Currency translation adjustments
    
    
    
    
    
    
    3
    
    
    
    1Pension plans and other post-retirement benefits:Adjustments to minimum pension liability prior to adoption of FAS 158
    
    
    15
    
    
    
    (16
    )
    
    
    (5
    )FAS 158 adjustments (note 26):Elimination of minimum pension liability
    
    
    13
    
    
    
    
    
    
    
    Net actuarial loss
    
    
    (9
    )
    
    
    
    
    
    
    Transition obligation
    
    
    (2
    )
    
    
    
    
    
    
    Less: reclassification adjustments for gains/losses recorded in earnings:Transfers of cash flow hedge (gains) losses to earnings:On recording hedged items in earnings
    
    
    77
    
    
    
    (134
    )
    
    
    (132
    )Hedge ineffectiveness due to changes in timing of hedged items
    
    
    
    
    
    
    (1
    )
    
    
    (2
    )Investments:Other than temporary impairment charges
    
    
    4
    
    
    
    16
    
    
    
    5Gains realized on sale
    
    
    (6
    )
    
    
    (17
    )
    
    
    (6
    )Other comprehensive income (loss), before tax
    
    
    152
    
    
    
    (134
    )
    
    
    5Income tax recovery (expense) related to OCI
    
    
    (2
    )
    
    
    34
    
    
    
    4Other comprehensive income (loss), net of tax
    
    $
    150
    
    
    $
    (100
    )
    
    $
    9Accumulated OCI at December 31Cash flow hedge gains, net of tax of $60, $61, $95
    
    
    223
    
    
    
    128
    
    
    
    206Investments, net of tax of $7, $nil, $nil
    
    
    46
    
    
    
    12
    
    
    
    21Currency translation adjustments, net of tax of $nil, $nil, $nil
    
    
    (143
    )
    
    
    (143
    )
    
    
    (146
    )Pension plans and other post-retirement benefits, net of tax of $4, $nil, $nil
    
    
    (7
    )
    
    
    (28
    )
    
    
    (12
    )$
    119
    
    
    $
    (31
    )
    
    $
    69
 118§ Notes to Consolidated Financial Statements
    
    Barrick Financial Report 2006




---



##### 



25 § Stock-based Compensation
 a) Stock Options
   Employee Stock Option Activity (Number of Shares in Millions)
 2006
    
    
    2005
    
    
    2004Average
    
    
    
    
    
    
    Average
    
    
    
    
    
    
    AverageShares
    
    
    price
    
    
    Shares
    
    
    price
    
    
    Shares
    
    
    priceC$ optionsAt January 1
    
    
    14.7
    
    
    $
    28
    
    
    
    19.4
    
    
    $
    28
    
    
    
    21.5
    
    
    $
    27Granted
    
    
    
    
    
    $
    
    
    
    
    
    
    
    $
    
    
    
    
    0.8
    
    
    $
    28Issued on acquisition of Placer Dome
    
    
    1.7
    
    
    $
    34
    
    
    
    
    
    
    $
    
    
    
    
    
    
    
    $
    Exercised
    
    
    (2.4
    )
    
    $
    26
    
    
    
    (3.8
    )
    
    $
    25
    
    
    
    (1.7
    )
    
    $
    25Forfeited
    
    
    (0.2
    )
    
    $
    27
    
    
    
    (0.8
    )
    
    $
    27
    
    
    
    (0.7
    )
    
    $
    26Cancelled/expired
    
    
    (1.9
    )
    
    $
    40
    
    
    
    (0.1
    )
    
    $
    40
    
    
    
    (0.5
    )
    
    $
    31At December 31
    
    
    11.9
    
    
    $
    28
    
    
    
    14.7
    
    
    $
    28
    
    
    
    19.4
    
    
    $
    28US$ optionsAt January 1
    
    
    6.9
    
    
    $
    24
    
    
    
    5.9
    
    
    $
    22
    
    
    
    2.2
    
    
    $
    19Granted
    
    
    1.1
    
    
    $
    30
    
    
    
    2.1
    
    
    $
    25
    
    
    
    4.9
    
    
    $
    24Issued on acquisition of Placer Dome
    
    
    1.0
    
    
    $
    19
    
    
    
    
    
    
    $
    
    
    
    
    
    
    
    $
    Exercised
    
    
    (0.9
    )
    
    $
    21
    
    
    
    (0.3
    )
    
    $
    15
    
    
    
    (1.0
    )
    
    $
    15Forfeited
    
    
    (0.4
    )
    
    $
    24
    
    
    
    (0.4
    )
    
    $
    28
    
    
    
    
    
    
    
    Cancelled/expired
    
    
    
    
    
    $
    25
    
    
    
    (0.4
    )
    
    $
    26
    
    
    
    (0.2
    )
    
    $
    32At December 31
    
    
    7.7
    
    
    $
    25
    
    
    
    6.9
    
    
    $
    24
    
    
    
    5.9
    
    
    $
    22
 Stock Options Outstanding (Number of Shares in Millions)
 Outstanding
    
    
    ExercisableIntrinsic
    
    
    
    
    
    
    
    
    
    
    IntrinsicAverage
    
    
    Average
    
    
    value1
    
    
    
    
    
    
    Average
    
    
    value1Range of exercise prices
    
    Shares
    
    
    price
    
    
    life (years)
    
    
    ($ millions)
    
    
    Shares
    
    
    price
    
    
    ($ millions)C$ options$22 - $27
    
    
    4.9
    
    
    $
    24
    
    
    
    6
    
    
    $
    57
    
    
    
    4.8
    
    
    
    24
    
    
    $
    55$28 - $31
    
    
    5.6
    
    
    $
    29
    
    
    
    6
    
    
    
    37
    
    
    
    4.5
    
    
    
    29
    
    
    
    30$32 - $43
    
    
    1.4
    
    
    $
    36
    
    
    
    1
    
    
    
    
    
    
    
    1.3
    
    
    
    36
    
    
    
    11.9
    
    
    $
    28
    
    
    
    5
    
    
    $
    94
    
    
    
    10.6
    
    
    
    28
    
    
    $
    85US$ options$9 - $19
    
    
    0.3
    
    
    $
    12
    
    
    
    6
    
    
    $
    5
    
    
    
    0.2
    
    
    
    12
    
    
    $
    5$20 - $27
    
    
    6.2
    
    
    $
    24
    
    
    
    6
    
    
    
    42
    
    
    
    2.7
    
    
    
    23
    
    
    
    20$28 - $37
    
    
    1.2
    
    
    $
    30
    
    
    
    10
    
    
    
    1
    
    
    
    0.1
    
    
    
    28
    
    
    
    7.7
    
    
    $
    25
    
    
    
    7
    
    
    $
    48
    
    
    
    3.0
    
    
    
    23
    
    
    $
    25
 1.
    
    Based on the closing market share price on December 31, 2006 of C$35.85 and US$30.70.
 Barrick Financial Report 2006
    
    Notes to Consolidated Financial Statements § 119




---



##### 



Option Information
 For the years ended December 31(per share and per option amounts in dollars)
    
    2006
    
    
    2005
    
    
    2004Valuation assumptions
    
    Lattice1,2
    
    Black-Scholes1
    
    Lattice2
    
    Black-ScholesExpected term (years)
    
    
    4.5-5
    
    
    
    5
    
    
    
    5
    
    
    
    5Expected volatility2
    
    
    30%38
    %
    
    
    23%30
    %
    
    
    31%38
    %
    
    
    30
    %Weighted average expected volatility2
    
    
    31.6
    %
    
    
    n/a
    
    
    
    33.3
    %
    
    
    n/aExpected dividend yield
    
    
    0.7%0.9
    %
    
    
    0.8%1 .0
    %
    
    
    0.9
    %
    
    
    1 .0
    %Risk-free interest rate2
    
    
    4.3%5.1
    %
    
    
    3.8%4.0
    %
    
    
    4.3%4.5
    %
    
    
    3.8
    %Options granted (in millions)3
    
    
    1.1
    
    
    
    1.1
    
    
    
    1.0
    
    
    
    5.7Weighted average fair value per option
    
    $
    9.42
    
    
    $
    7.30
    
    
    $
    8.13
    
    
    $
    6.87
 1.
    
    Different assumptions were used for the multiple stock option grants during the year.2.
    
    Stock option grants issued after September 30, 2005 were valued using the Lattice valuation
model. The volatility and risk-free interest rate assumption varied over the
expected term of these stock option grants.3.
    
    Excludes 2.7 million fully vested options issued on the acquisition of Placer Dome.
      Stock Option Expense
 For the years ended December 31($ millions, except per shareamounts in dollars)
    
    2006
    
    
    2005Pro forma effectsNet income, as reported
    
    
    401
    
    
    
    248Stock option expense
    
    
    (26
    )
    
    
    (29
    )Pro forma net income
    
    
    375
    
    
    
    219Net income per share:As reported  basic
    
    $
    0.75
    
    
    $
    0.47As reported  diluted
    
    $
    0.75
    
    
    $
    0.46Pro forma1
    
    $
    0.70
    
    
    $
    0.41
 1.
    
    Basic and diluted.
 120§ Notes to Consolidated Financial Statements
    
    Barrick Financial Report 2006




---



##### 



b) Restricted Share Units (RSUs) and Deferred Share Units (DSUs)
    DSU and RSU ActivityFair
    
    
    
    
    
    
    FairDSUs
    
    
    value
    
    
    RSUs
    
    
    value(thousands)
    
    
    (millions)
    
    
    (thousands)
    
    
    (millions)At December 31, 2003
    
    
    8
    
    
    $
    0.2
    
    
    
    452
    
    
    $
    10.4Settled
    
    
    
    
    
    
    
    
    
    
    (293
    )
    
    
    (7.3
    )Granted
    
    
    23
    
    
    
    0.5
    
    
    
    131
    
    
    
    3.1Forfeited
    
    
    
    
    
    
    
    
    
    
    (58
    )
    
    
    (1.3
    )Credits for dividends
    
    
    
    
    
    
    
    
    
    
    3
    
    
    
    0.1Change in value
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.6At December 31, 2004
    
    
    31
    
    
    $
    0.7
    
    
    
    235
    
    
    $
    5.6Settled
    
    
    (3
    )
    
    
    (0.1
    )
    
    
    
    
    
    
    Forfeited
    
    
    
    
    
    
    
    
    
    
    (38
    )
    
    
    (0.9
    )Granted
    
    
    19
    
    
    
    0.5
    
    
    
    415
    
    
    
    11.1Converted to stock options
    
    
    
    
    
    
    
    
    
    
    (3
    )
    
    
    (0.1
    )Credits for dividends
    
    
    
    
    
    
    
    
    
    
    2
    
    
    
    0.1Change in value
    
    
    
    
    
    
    0.3
    
    
    
    
    
    
    
    0.6At December 31, 2005
    
    
    47
    
    
    $
    1.4
    
    
    
    611
    
    
    $
    16.4Settled
    
    
    
    
    
    
    
    
    
    
    (82
    )
    
    
    (2.5
    )Forfeited
    
    
    
    
    
    
    
    
    
    
    (58
    )
    
    
    (1.6
    )Granted1
    
    
    22
    
    
    
    0.7
    
    
    
    893
    
    
    
    27Converted to stock options
    
    
    
    
    
    
    
    
    
    
    (18
    )
    
    
    (0.5
    )Credits for dividends
    
    
    
    
    
    
    
    
    
    
    8
    
    
    
    0.2Change in value
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2.6At December 31, 2006
    
    
    69
    
    
    $
    2.1
    
    
    
    1,354
    
    
    $
    41.6
 1.
    
    In January 2006, under our RSU plan, 18,112 restricted share units were converted to 72,448
stock options, and 9,395 units were forfeited.
 26 § Post-retirement Benefits
 a) Defined Contribution Pension Plans
  b) Defined Benefit Pension Plans
  Barrick Financial Report 2006
    
    Notes to Consolidated Financial Statements § 121




---



##### 



Pension
Expense (Credit)
 For the years ended December 31
    
    2006
    
    
    2005
    
    
    2004Expected return on plan assets
    
    $
    (20
    )
    
    $
    (11
    )
    
    $
    (11
    )Service cost
    
    
    4
    
    
    
    
    
    
    
    Interest cost
    
    
    22
    
    
    
    12
    
    
    
    12Actuarial losses
    
    
    1
    
    
    
    
    
    
    
    1Curtailment gains
    
    
    (8
    )
    
    
    
    
    
    
    (2
    )$
    (1
    )
    
    $
    1
    
    
    $
    
 c) Pension Plan Information
 Fair Value of Plan Assets
 For the years ended December 31
    
    2006
    
    
    2005
    
    
    2004Balance at January 1
    
    $
    166
    
    
    $
    170
    
    
    $
    166Increase for plans assumed on
acquisition of Placer Dome
    
    
    127
    
    
    
    
    
    
    
    Actual return on plan assets
    
    
    35
    
    
    
    10
    
    
    
    14Company contributions
    
    
    10
    
    
    
    10
    
    
    
    6Benefits paid
    
    
    (37
    )
    
    
    (24
    )
    
    
    (16
    )Balance at December 31
    
    $
    301
    
    
    $
    166
    
    
    $
    170
 2006
    
    
    
    
    
    
    2005At December 31
    
    Target
    
    
    Actual
    
    
    Actual
    
    
    ActualComposition of plan
assets:Equity securities
    
    
    60
    %
    
    
    59%63
    %
    
    $
    180
    
    
    $
    81Debt securities
    
    
    40
    %
    
    
    23%41
    %
    
    
    106
    
    
    
    85Real estate
    
    
    
    
    
    
    3%9
    %
    
    
    9
    
    
    
    Other
    
    
    
    
    
    
    2%9
    %
    
    
    6
    
    
    
    100
    %
    
    
    100
    %
    
    $
    301
    
    
    $
    166
 Projected Benefit Obligation (PBO)
 For the years ended December 31
    
    2006
    
    
    2005Balance at January 1
    
    $
    224
    
    
    $
    218Increase for plans assumed on
acquisition of Placer Dome
    
    
    191Service cost
    
    
    4
    
    
    
    Interest cost
    
    
    22
    
    
    
    13Actuarial (gains) losses
    
    
    (7
    )
    
    
    17Benefits paid
    
    
    (37
    )
    
    
    (24
    )Curtailments
    
    
    (8
    )
    
    
    Balance at December 31
    
    $
    389
    
    
    $
    224Funded status1
    
    $
    (88
    )
    
    $
    (58
    )Actuarial losses
    
    
    n/a
    
    
    
    29Net benefit liability recorded
    
    
    n/a
    
    
    $
    (29
    )ABO2,3
    
    $
    386
    
    
    $
    222
 1.
    
    Represents the fair value of plan assets less projected benefit obligations. Plan
assets exclude investments held in a rabbi trust that are recorded separately on
our balance sheet under Investments (fair value $21 million at December 31,
2006). In the year ending December 31, 2007, we do not expect to make any
further contributions.2.
    
    For 2006, we used a measurement date of December 31, 2006 to calculate
accumulated benefit obligations.3.
    
    Represents the accumulated benefit obligation (ABO) for all plans.
The ABO for plans where the PBO exceeds the fair value of plan assets was
$110 million (2005: $222 million).
 Pension Plan Assets/Liabilities
 At December 31
    
    2006Non-current assets
    
    $
    5Current liabilities
    
    
    (8
    )Non-current liabilities
    
    
    (85
    )Other comprehensive income1
    
    
    6$
    (82
    )
 1.
    
    Amounts represent actuarial losses.
  For the years ended December 31
    
    2006
    
    
    2005Projected benefit obligation, end of year
    
    $
    111
    
    
    $
    224Fair value of plan assets, end of year
    
    $
    62
    
    
    $
    166
 122§ Notes to Consolidated Financial Statements
    
    Barrick Financial Report 2006




---



##### 



For the years ended December 31
    
    2006
    
    
    2005Projected benefit obligation, end of year
    
    $
    111
    
    
    $
    224Accumulated benefit obligation, end of year
    
    $
    110
    
    
    $
    222Fair value of plan assets, end of year
    
    $
    62
    
    
    $
    166
 Effect of Adopting FAS 158
  Pre-
    
    
    Adjust-
    
    
    Post-For the years ended December 31 , 20061
    
    FAS 158
    
    
    ments
    
    
    FAS 158Liability for plansPension plans
    
    $
    82
    
    
    $
    6
    
    
    $
    88Other post-retirement benefits
    
    
    31
    
    
    
    5
    
    
    
    36Additional minimum liability2
    
    
    13
    
    
    
    (13
    )
    
    
    Total recognized benefit liability
    
    $
    126
    
    
    $
    (2
    )
    
    $
    124Liability for plansNet actuarial loss
    
    $
    
    
    
    $
    9
    
    
    $
    9Transition obligation
    
    
    
    
    
    
    2
    
    
    
    2$
    
    
    
    $
    11
    
    
    $
    11
 1.
    
    Includes incremental effect for other post-retirement benefits.2.
    
    Elimination of historically recorded amounts in OCI.
 Expected Future Benefit Payments
 For the years ending December 312007
    
    $
    332008
    
    
    282009
    
    
    272010
    
    
    362011
    
    
    272012-2016
    
    $
    134
 d) Actuarial Assumptions
 For the years ended December 31
    
    2006
    
    
    2005
    
    
    2004Discount rate1Benefit obligation
    
    
    4.40%-5.90
    %
    
    
    5.50
    %
    
    
    5.50
    %Pension cost
    
    
    4.40%-5.90
    %
    
    
    5.50
    %
    
    
    6.25
    %Return on plan assets1
    
    
    7.00%-7.25
    %
    
    
    7.00
    %
    
    
    7.00
    %Wage increases
    
    
    3.5%-5.00
    %
    
    
    5.00
    %
    
    
    5.00
    %
 1.
    
    Effect of a one-percent change: Discount rate: $33 million decrease in ABO and $2 million
increase in pension cost; Return on plan assets: $3 million decrease in pension cost.
    Barrick Financial Report 2006
    
    Notes to Consolidated Financial Statements § 123




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##### 



e) Other Post-retirement Benefits
  Other Post-retirement Benefits Expense
 For the years ended December 31
    
    2006
    
    
    2005
    
    
    2004Interest cost
    
    $
    2
    
    
    $
    2
    
    
    $
    2Other
    
    
    
    
    
    
    5
    
    
    
    $
    2
    
    
    $
    7
    
    
    $
    2
 Fair Value of Plan Assets
 For the years ended December 31
    
    2006
    
    
    2005
    
    
    2004Balance at January 1
    
    $
    
    
    
    $
    
    
    
    $
    Contributions
    
    
    3
    
    
    
    4
    
    
    
    2Benefits paid
    
    
    (3
    )
    
    
    (4
    )
    
    
    (2
    )Balance at December 31
    
    $
    
    
    
    $
    
    
    
    $
    
 Accumulated Post-retirement Benefit Obligation (APBO)
 For the years ended December 31
    
    2006
    
    
    2005
    
    
    2004Balance at January 1
    
    $
    39
    
    
    $
    29
    
    
    $
    24Interest cost
    
    
    2
    
    
    
    2
    
    
    
    2Actuarial losses
    
    
    (1
    )
    
    
    11
    
    
    
    5Benefits paid
    
    
    (3
    )
    
    
    (3
    )
    
    
    (2
    )Balance at December 31
    
    $
    37
    
    
    $
    39
    
    
    $
    29Funded status
    
    
    (37
    )
    
    
    (38
    )
    
    
    (29
    )Unrecognized net transition obligation
    
    
    n/a
    
    
    
    1
    
    
    
    Unrecognized actuarial losses
    
    
    n/a
    
    
    
    6
    
    
    
    1Net benefit liability recorded
    
    
    n/a
    
    
    $
    (31
    )
    
    $
    (28
    )
 Other Post-retirement Assets/Liabilities
 For the year ended December 31
    
    2006Current liability
    
    $
    (3
    )Non-current liability
    
    
    (33
    )Accumulated other comprehensive income
    
    
    5$
    (31
    )
 l
 For the year ended December 31
    
    2006Net actuarial loss (gain)
    
    $
    3Transition obligation (asset)
    
    
    2$
    5
 1.
    
    The estimated amounts that will be amortized into net periodic benefit cost in 2007.
  Expected Future Benefit Payments
 For the years ending December 312007
    
    $
    32008
    
    
    32009
    
    
    32010
    
    
    32012
    
    
    32012-2016
    
    
    14
 124§ Notes to Consolidated Financial Statements
    
    Barrick Financial Report 2006




---



##### 



27 § Litigation and Claims
   Wagner Complaint
  Wilcox Complaint
  Cowal Mine
  Barrick Financial Report 2006
    
    Notes to Consolidated Financial Statements § 125




---



##### 



Marinduque Complaint
  forum non conveniens
 Calancan Bay (Philippines) Complaint
   Pakistani Constitutional Litigation
    126§ Notes to Consolidated Financial Statements
    
    Barrick Financial Report 2006




---



##### 



NovaGold Litigation
    28 § Unincorporated Joint Ventures
  Summary Financial Information (100%)
 Income Statement and Cash Flow Information
 For the years ended December 31
    
    2006
    
    
    2005
    
    
    2004Revenues
    
    $
    1,776
    
    
    $
    1,009
    
    
    $
    946Costs and expenses
    
    
    (1,447
    )
    
    
    (796
    )
    
    
    (702
    )Net income
    
    $
    329
    
    
    $
    213
    
    
    $
    244Operating activities1
    
    $
    473
    
    
    $
    318
    
    
    $
    316Investing activities1
    
    $
    (284
    )
    
    $
    (75
    )
    
    $
    (81
    )Financing activities1,2
    
    $
    (185
    )
    
    $
    (237
    )
    
    $
    (236
    )
 1.
    
    Net cash inflow (outflow).2.
    
    Includes cash flows between the joint ventures and joint venture partners.
 Balance Sheet Information
 At December 31
    
    2006
    
    
    2005AssetsInventories
    
    $
    365
    
    
    $
    176Property, plant and equipment
    
    
    2,478
    
    
    
    504Other assets
    
    
    126
    
    
    
    87$
    2,969
    
    
    $
    767LiabilitiesCurrent liabilities
    
    $
    205
    
    
    $
    123Long-term obligations
    
    
    202
    
    
    
    105Deferred tax
    
    
    42
    
    
    
    $
    449
    
    
    $
    228
 Barrick Financial Report 2006
    
    Notes to Consolidated Financial Statements § 127