Barrick Gold Reports Stellar Quarter Amid Strategic Restructuring Plans

Barrick CA06849F1080

Barrick Gold Corporation concluded 2025 with a powerful performance, delivering record-breaking financial results while simultaneously advancing a major corporate initiative. The gold mining giant announced plans to pursue an initial public offering (IPO) for its North American gold assets, a move that could reshape the company's future structure. This strategic pivot comes alongside the permanent appointment of its chief executive.

The company's fourth-quarter 2025 results surpassed market forecasts. Revenue surged to $6.00 billion, marking a 65% year-over-year increase. Net income reached $2.41 billion, equivalent to $1.43 per share. Even on an adjusted basis, earnings per share of $1.04 outperformed the consensus analyst estimate of $0.90.

Operational strength was evident in cash generation. Operating cash flow hit $2.73 billion for the quarter, with free cash flow coming in at $1.62 billion. The full-year picture was even more striking: free cash flow for 2025 soared by 194% compared to 2024, reaching $3.87 billion.

A significant contributor was the realized gold price, which the company reported averaged $4,177 per ounce in Q4—a 21% jump from the previous quarter. Production targets were met, with quarterly gold output of 871,000 ounces and annual production of 3.26 million ounces aligning with guidance. Annual copper production also met expectations at 220,000 tonnes.

Enhanced Returns to Shareholders

In response to the robust cash flow, Barrick declared a substantial increase in its quarterly dividend. The payout was raised to $0.42 per share, representing a 140% increase from the third quarter. This dividend will be distributed on March 16, 2026, to shareholders of record as of February 27, 2026.

The company also remained active in buying back its own stock. Throughout 2025, Barrick repurchased approximately 51.9 million shares for $1.5 billion, including $500 million worth in the fourth quarter alone. Combined dividend and buyback activity resulted in a total shareholder return of $2.39 billion for the year, a company record.

Concurrently, Barrick introduced a new dividend policy framework. The objective is to return 50% of attributable free cash flow to shareholders annually. The policy will consist of a fixed base dividend ($0.175 per share per quarter) supplemented by a performance-linked year-end component.

Strategic Moves and Market Headwinds

The Board of Directors has instructed management to begin preparations for listing the company's North American gold assets. The transaction is anticipated to be finalized by the end of 2026. The new entity, referred to as "NewCo," is expected to include interests in Nevada Gold Mines and Pueblo Viejo, as well as Barrick's Fourmile discovery in Nevada. Analyst estimates cited by Reuters value these assets at approximately $42 billion. Barrick plans to sell a 10-15% stake in the IPO while retaining majority control.

Despite the strong figures, market reaction highlighted investor concerns over other details. According to Reuters, trading in Toronto was influenced by a cost forecast that exceeded expectations and disclosures regarding payments related to operations in Mali. For 2026, Barrick provided an all-in sustaining costs (AISC) guidance range of $1,760 to $1,950 per ounce.

Key Takeaways:
* Q4 Revenue: $6.00 billion (+65% year-over-year)
* Adjusted EPS: $1.04 (above the $0.90 expectation)
* Quarterly Dividend: $0.42 per share (+140% vs. Q3)
* 2025 Share Buybacks: $1.5 billion (roughly 3% of shares outstanding)
* North American asset IPO in preparation, with completion targeted for late 2026

Leadership clarity was also provided. Mark Hill, who had served as interim CEO since September 2025, has been confirmed permanently as President and CEO. He will also join the Board of Directors as a non-independent member.

Recent market sentiment was reflected in the share price, which traded at €37.72, declining 13.31% over the preceding seven days.