FILED BY HOMESTAKE MINING
COMPANY PURSUANT TO RULE 425
UNDER THE SECURITIES ACT OF 1933
SUBJECT COMPANY: HOMESTAKE
MINING COMPANY
COMMISSION FILE NO: 1-8736
Cautionary Statement
During this presentation, there may be statements regarding, estimates of
future production, estimates of capital and other costs, future or
estimated reserves and mineralization and other estimates of future results
or activity. Such statements are "forward looking statements" within the
meaning of the United States Private Securities Litigation Reform Act of
1995 that involve known and unknown risks, uncertainties and other factors
that may cause actual results, performance or achievements to differ
materially from future results, performance or achievements expressed or
implied by those forward looking statements. These risks, uncertainties and
other factors include, but are not limited to, political events, changes in
the worldwide price of gold or certain other commodities, currency
fluctuations and other general economic conditions, labour relations,
timing of permits and other governmental approvals and requirements,
changes in expected operating conditions, lower than expected ore grades,
unexpected ground and mining conditions, availability and cost of materials
and equipment, and risks generally inherent in the exploration, development
and mining business. These factors are discussed in greater detail in
Barrick Gold Corporation's "Management's Discussion and Analysis of
Financial and Operating Results" and Annual Information Form for the year
ended December 31, 2000, on file with the U.S. Securities and Exchange
Commission and Canadian provincial securities regulatory authorities, and
in Homestake Mining Company's 10-K Report for the year ended December 31,
2000, on file with the U.S. Securities and Exchange Commission.
BARRICK HOMESTAKE
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Randall Oliphant Jack Thompson
Chairman and C.E.O. Chairman and C.E.O.
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o Largest market capitalization
o Highest earnings and cash flow
o Lowest costs
o Strongest balance sheet
Barrick
Homestake
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TERMS OF THE DEAL
US$ per share
$16.43
-------
$16.00 [ ]
[ ]
[ ]
[ ]
12.00 [ ]
[ ] $8.71 $8.71
------- ------- -------
[0.53 ] [0.53 ] [1.31 ]
8.00 [ ] [ ] [ ]
[ ] [ ] [ ] $6.65
[ ] [ ] ------- -------
[ ] [ ] [$6.65] [ ]
4.00 [ ] [ ] [ ] [ ]
[ ] [ ] [ ] [ ]
[ ] [ ] [ ] [ ]
[ ] [ ] [ ] [ ]
0 -------------------------------------------------------------------
Barrick Barrick Homestake Homestake
Barrick
Homestake
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o Approved by Homestake Board
o Commitment agreements +12%
o Tax-free transaction
o Regulatory approval
o Shareholder approval
o Pooling of interests in U.S. GAAP
Barrick
Homestake
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o Strategic merger
o Good fit
- strategically
- philosophically
- operationally
- financially
Barrick
Homestake
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HOMESTAKE MINING
o One of NYSE's oldest stocks
o Reinvented itself
o Retooled operations
o Low-cost producer
o Long-life, low-risk asset base
Barrick
Homestake
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A GREAT FIT
o Accretive to both companies
o Industry leader in scale and quality
Barrick
Homestake
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FINANCIAL STRENGTH
o Highest earnings, cash flows and profit margins
o Premium Gold Sales Program
o Presence in capital markets
Barrick
Homestake
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OPERATIONAL STRENGTH
o Production: 6 million ounces
o Cash costs: $156 per ounce
o Reserves: 79 million ounces
o Low-cost, long-life asset base
Barrick
Homestake
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[MAP OF WORLD INDICATING LOCATIONS OF BARRICK MINES AND
HOMESTAKE MINES--GRAPHIC OMITTED]
Barrick
Homestake
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BENEFITS FOR HOMESTAKE
o 31% premium
o Tax-free transaction
o Accretive to earnings, cash-flow, production and reserves per share
o Enhances operating and financial strength
Barrick
Homestake
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BENEFITS FOR HOMESTAKE
o More expansion options:
- organic growth
- selective property acquisitions
- industry consolidation
Barrick
Homestake
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BARRICK AS A PARTNER
o Creating shareholder value
o Strong position in capital markets
o Positioned to prosper
Barrick
Homestake
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o Common culture
o Joint-venture partners at Veladero
o Joint integration team
Barrick
Homestake
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o Good strategic, cultural and financial fit
o Benefits both companies
o $10 billion company
o Committed to social and environmental responsibility
o Loyal, long-term shareholders
o First-rate management teams
o Focused on shareholder value
o Highly liquid
Barrick
Homestake
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BARRICK HOMESTAKE
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BARRICK HOMESTAKE
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Randall Oliphant Jack Thompson
President and C.E.O. Chairman and C.E.O.