Barrick Gold Corp. (ABX) | Analysis of Investments

Investment Accounting Policy

Investments in publically quoted equity securities that are neither subsidiaries nor associates are categorized as available-for-sale. Available-for-sale equity investments are recorded at fair value with unrealized gains and losses recorded in OCI. Realized gains and losses are recorded in earnings when investments are sold and are calculated using the average carrying amount of securities sold.

If the fair value of an investment declines below the carrying amount, Barrick undertakes qualitative and quantitative assessments of whether the impairment is either significant or prolonged. Barrick considers all relevant facts and circumstances in this assessment, particularly the length of time and extent to which fair value has been less than the carrying amount.

If an unrealized loss on an available-for-sale investment has been recognized in OCI and it is deemed to be either significant or prolonged, any cumulative loss that had been recognized in OCI is reclassified as an impairment loss in the consolidated statement of income. The reclassification adjustment is calculated as the difference between the acquisition cost (net of any principal repayment and amortization) and current fair value, less any impairment loss on that financial asset previously recognized. If the value of a previously impaired available for sale equity investment subsequently recovers, additional unrealized gains are recorded in OCI and the previously recorded impairment losses are not subject to reversal through the consolidated statement of income.

Source: Barrick Gold Corp., Annual Report

Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

Barrick Gold Corp., adjustment to Net Income (loss) Attributable To Equity Holders Of Barrick Gold Corporation

	12 months ended	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007
	Net income (loss) attributable to equity holders of Barrick Gold Corporation (as reported)
	Add: Unrealized gains (losses) on available-for-sale ("AFS") financial securities, net of tax
	Less: Realized (gains) losses and impairments on AFS financial securities, net of tax
	Net income (loss) attributable to equity holders of Barrick Gold Corporation (adjusted)

Adjusted Ratios: Mark to Market Available-for-sale Securities (Summary)

Barrick Gold Corp., adjusted ratios

		Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007
	Net Profit Margin
	Reported net profit margin	%	%	%	%	%
	Adjusted net profit margin	%	%	%	%	%
	Return on Equity (ROE)
	Reported ROE	%	%	%	%	%
	Adjusted ROE	%	%	%	%	%
	Return on Assets (ROA)
	Reported ROA	%	%	%	%	%
	Adjusted ROA	%	%	%	%	%

Adjusted Net Profit Margin

		Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007
	As Reported
	Net income (loss) attributable to equity holders of Barrick Gold Corporation (USD $ in millions)
	Revenue (USD $ in millions)
	Net profit margin1	%	%	%	%	%
	Adjusted: Mark to Market Available-for-sale Securities
	Adjusted net income (loss) attributable to equity holders of Barrick Gold Corporation (USD $ in millions)
	Revenue (USD $ in millions)
	Adjusted net profit margin2	%	%	%	%	%

2011 Calculations

Adjusted Return On Equity (ROE)

		Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007
	As Reported
	Net income (loss) attributable to equity holders of Barrick Gold Corporation (USD $ in millions)
	Equity attributable to Barrick Gold Corporation shareholders (USD $ in millions)
	ROE1	%	%	%	%	%
	Adjusted: Mark to Market Available-for-sale Securities
	Adjusted net income (loss) attributable to equity holders of Barrick Gold Corporation (USD $ in millions)
	Equity attributable to Barrick Gold Corporation shareholders (USD $ in millions)
	Adjusted ROE2	%	%	%	%	%

2011 Calculations

Adjusted Return On Assets (ROA)

		Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007
	As Reported
	Net income (loss) attributable to equity holders of Barrick Gold Corporation (USD $ in millions)
	Total assets (USD $ in millions)
	ROA1	%	%	%	%	%
	Adjusted: Mark to Market Available-for-sale Securities
	Adjusted net income (loss) attributable to equity holders of Barrick Gold Corporation (USD $ in millions)
	Total assets (USD $ in millions)
	Adjusted ROA2	%	%	%	%	%

2011 Calculations