Barrick Gold Unveils Major Corporate Restructuring and Record Quarterly Performance

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In a significant strategic shift, Barrick Gold Corporation is advancing plans to separate its core North American gold assets into a new publicly traded entity. The company has simultaneously reported record-breaking financial results for the final quarter of 2025, accompanied by a substantial dividend increase and continued share repurchases.

The board of directors has authorized preparations for an initial public offering (IPO) of a new company, referred to internally as "NewCo." This entity will house Barrick's cornerstone assets, including its interests in the Nevada Gold Mines joint venture and the Pueblo Viejo joint venture in the Dominican Republic. The promising Fourmile discovery in Nevada will also be contributed to the new company.

According to CEO Mark Hill, Barrick intends to sell a 10% to 15% stake in NewCo through the IPO, while retaining a significant controlling majority. Mines and projects located in regions perceived as higher risk, such as Africa and Pakistan, will remain under the umbrella of the parent corporation. This move clearly aims to create a distinct separation between its premier North American operations and its other global holdings.

Market expectations for the valuation of the new entity are already running high. Analysis from Bloomberg Intelligence suggests that, applying a premium similar to that of North American peer Agnico Eagle, NewCo could be valued at nearly $62 billion. This figure aligns with a separate report from the Financial Post, which also cited a potential valuation exceeding $60 billion. The targeted timeline for the public listing is set for the end of 2026.

Record Quarterly Results and Revised Shareholder Returns

Coinciding with its restructuring announcement, Barrick released stellar financial results for Q4 and the full year 2025. The company attributed the strong performance primarily to higher realized metal prices, which flowed directly to its bottom line and cash generation.

The fourth quarter saw Barrick generate an operating cash flow of $2.73 billion. Free cash flow reached $1.62 billion, marking a 9% increase over the previous quarter. Net earnings soared to $2.41 billion, or $1.43 per share—reportedly the highest quarterly earnings per share in the company's history. Gold production rose 5% from Q3 to 871,000 ounces, while copper output increased 13% to 62,000 tonnes.

For the full 2025 year, production totaled 3.26 million ounces of gold and 220,000 tonnes of copper, meeting the company's guidance.

In a bold move for shareholder returns, Barrick declared a Q4 dividend of $0.42 per share, a dramatic 140% increase compared to the third quarter. The payment is scheduled for March 16, with an ex-dividend date of February 27.

Furthermore, the company introduced a new dividend policy framework. The goal is to return 50% of attributable free cash flow to shareholders annually. This will consist of a fixed base dividend of $0.175 per share, supplemented by a performance-linked variable component paid at year-end.

Share Buybacks and 2026 Outlook

Barrick remained active in repurchasing its own shares during the quarter, buying back approximately 12.11 million shares in Q4. For the entire year, repurchases totaled about 51.90 million shares, representing roughly 3.0% of outstanding shares, for a total consideration of $1.5 billion. This included $500 million spent in the fourth quarter alone.

Looking ahead to 2026, Barrick provided production guidance of 2.9 to 3.25 million ounces of gold and 190,000 to 220,000 tonnes of copper. A key operational focus will be the Fourmile project in Nevada, which the company expects will have a pivotal year in 2026, with planned expenditures for drilling programs set to rise significantly.

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