Barrick’s Earnings Leap 240% and Production Bettered Guidance, but a Compensation Revolt and a 6% Sell-Off Cloud the Picture

Barrick Mining reports strong Q1 with 719k oz gold output, lower costs, and $1.6B net income, but shareholder discontent over compensation and a 6% stock drop temper optimism.

Barrick Mining posted 719,000 ounces of gold production in the first quarter, surpassing its internal outlook, while all-in sustaining costs fell to $1,708 an ounce — a counterintuitive achievement in a period of broad industry inflation. That operational discipline helped propel net income to $1.6 billion, nearly 240% higher than the $474 million reported in the same period last year.

Revenue climbed to $5.22 billion, powered by an average realised gold price of $4,823 per ounce. Adjusted earnings per share of $0.98 handily beat consensus estimates, and free cash flow surged almost 200% year-on-year. The company now expects second-quarter output of as much as 770,000 ounces, with full-year guidance unchanged at between 2.90 million and 3.25 million ounces.

Yet the strength of those fundamentals did little to shield management from shareholder discontent at the annual meeting on Thursday. While all nine board members were re-elected, nearly a quarter of investors voted against the current executive compensation program. The vote is non-binding, but market participants view it as a stiff warning that the remuneration committee will struggle to ignore in future cycles.

The stock reflected the mixed sentiment. On Friday, Barrick’s shares slid 6.16% to close at C$55.60 on the Toronto Stock Exchange, extending a decline that now leaves them more than 22% below the January high. Analysts, however, remain largely constructive. UBS lifted its price target to $54 US and maintained a buy rating, while Scotiabank reiterated its positive stance. Other houses assign “outperformer” ratings with targets as high as $63 US.

The company moved swiftly to deploy its swelling cash pile. The board authorised a $3 billion share repurchase programme, and a quarterly dividend of $0.175 per share has been declared for June. On the strategic front, Barrick is pressing ahead with plans to list a minority stake in its North American gold assets — including its interest in Nevada Gold Mines — as a standalone entity. The initial public offering is targeted for completion by the end of 2026.

Elsewhere on the project map, the expansion of the Lumwana copper mine in Zambia remains on budget and on schedule to double capacity by early 2028. The Reko Diq project in Pakistan, however, faces further delays: security concerns have pushed the feasibility study phase to around mid-2027. Steady ramp-ups at Loulo-Gounkoto in Mali and operations in Nevada are expected to underpin the annual production target through the coming quarters.