Barrick Gold Shares Navigate a Week of Sharp Swings

Barrick Mining CA0679011084

The stock of gold mining giant Barrick Gold experienced pronounced volatility this week, caught between strong financial results and strategic uncertainties. Investor profit-taking and public pressure from a key partner created a turbulent trading environment.

The backdrop for this activity was the company's fourth-quarter 2026 report, released on February 5. Barrick generated an operating cash flow of approximately $2.73 billion and a free cash flow of around $1.62 billion. Both figures represent quarterly records for the miner.

Revenue reached $6 billion, marking a sequential increase of 45 percent and a year-over-year gain of 64.53 percent. Management attributed this performance to higher production volumes and a realized gold price that was 21 percent stronger.

This robust liquidity position allowed Barrick to return a record $2.39 billion to shareholders through a combination of increased dividends and share buybacks. For the full year 2025, gold production totaled 3.26 million ounces. The company also reported a 13 percent rise in copper production for Q4. Barrick's financial strength is further underscored by a net cash position of $2 billion, alongside stable reserves of 85 million ounces of gold and 18 million tonnes of copper.

Trading Floor Turbulence

This fundamental strength, however, collided with market nerves. On February 17, 2026, the share price plunged 5.49 percent to an intraday low of $45.06 before stabilizing at $45.28. The very next day, it staged a significant recovery, climbing over three percent to $48.22. Currently, the equity trades roughly 17 percent below its 52-week high of $54.69, yet remains well above the low point of $17.00.

Planned Spinoff Creates Tension

A primary source of the recent volatility is Barrick's announced plan for a partial initial public offering (IPO) of its North American gold assets, scheduled for the fourth quarter of 2026. The strategy involves selling a minority stake in a new entity, which could be valued at over $60 billion. This unit would hold important joint venture interests and selected mines.

This move has not been welcomed by Newmont, Barrick's partner in the Nevada Gold Mines joint venture. Newmont has publicly criticized operational performance under Barrick's management and is seeking improvements. Furthermore, analysts note that Newmont could potentially invoke protective clauses within the joint venture agreement to complicate or even block the proposed listing. This public dispute has introduced uncertainty into Barrick's restructuring timeline.

Analyst Outlook Maintains Positive Bias

Despite the near-term challenges, analyst sentiment following the earnings report has been largely favorable. Several firms adjusted their valuations upward.

On February 10, Stifel reaffirmed its Buy rating and raised its price target from C$65 to C$95. Earlier, on February 6, D.A. Davidson increased its target from $53 to $60 per share.

The consensus price target among 15 covering analysts stands at $55.57, with estimates ranging from a low of $27.50 to a high of $71.00. Market observers suggest the coming months will be defined by progress on the planned IPO, resolution of the conflict with Newmont, and the ongoing trajectory of the gold price.