Barrick Q3 boosts cash, IPO prep and projects

Barrick Mining delivered a strong third quarter in 2026, reporting adjusted net earnings of $0.82 per share and consolidated adjusted EBITDA of $3.5 billion. The company generated $1.2 billion of free cash flow in the period, supported by higher gold and copper (HG1) prices and solid operational execution. Adjusted net earnings rose about 40% year over year, while attributable adjusted EBITDA increased more than 20%. Management kept full-year 2026 production and cost guidance unchanged and expects both gold and copper output to be higher in the fourth quarter.

Group gold production reached 816,000 ounces in the quarter, an increase from the previous quarter, while copper production totaled 50,000 tonnes. North American operations produced nearly 500,000 ounces of gold, with record throughput at the Gold Quarry roaster and record tonnes mined at Turquoise Ridge underground. International operations contributed 319,000 ounces of gold, up 6% from the second quarter, with stronger performance at Loulo-Gounkoto, Kibali and Bulyanhulu offsetting weather-related disruptions at Veladero and Porgera.

A key focus of the Q3 earnings call was Barrick’s plan to list its North American gold assets. The company expects to complete the IPO by early next year, subject to market conditions and regulatory review.

Barrick’s dividend policy provides for a quarterly base dividend of $0.175 per share, with a year-end top-up targeting total dividends equal to 50% of attributable free cash flow. Any additional proceeds from the planned IPO and transactions related to Fourmile would be considered separately from this top-up, subject to board approval. The company stated that its North America IPO efforts continued to progress alongside ongoing portfolio reviews in other regions.

Management emphasized disciplined capital allocation supported by a strengthened balance sheet. Barrick closed the quarter with $0.9 billion of net cash, an undrawn $3 billion revolving credit facility and no meaningful debt maturities until 2033. Free cash flow generation allowed the company to increase investment in growth projects while continuing to return capital. Year-to-date shareholder returns reached $3.2 billion, double the prior year’s level, including $0.8 billion of share buybacks in the third quarter. Since 2021, total distributions to shareholders have totaled $10.4 billion.

Growth-related capital spending in the quarter was $154 million higher than a year earlier as Barrick advanced multiple projects. The company reiterated that its first priority for capital is balance sheet strength, followed by sustaining the business and earnings-accretive growth, with excess cash returned to shareholders. Management noted that this framework remains in place even as the business generates significant cash and pursues major expansion initiatives.

In Zambia, the Lumwana copper expansion continued on schedule. Barrick has spent $795 million on the project and maintains a total capital target of $2 billion. The expansion is expected to lift annual copper production to 240,000 tonnes and support a mine life of more than 30 years, with first production from the expansion targeted for the end of the first quarter of 2028. Procurement of all major long-lead equipment is complete, and the mill building is scheduled for completion in the fourth quarter.

At Pueblo Viejo, Barrick is advancing a tailings expansion and a recovery improvement plan. Barrick said the new tailings facility is on schedule and on budget, with most permits received and resettlement largely completed.

Across Nevada Gold Mines, Barrick is evaluating additional processing capacity and rail infrastructure, with potential improvements viewed as post-2030 opportunities. The company has combined the Fourmile and NGM teams, identified operating synergies, and is reassessing engineering, access and life-of-mine plans at Fourmile. Optimization work has highlighted the need for more drilling and data, and updated information is also expected to feature in the upcoming IPO filings.

Operating costs remained under pressure from fuel, consumables, royalties, foreign exchange and additional waste stripping. Barrick expects to stay within its full-year gold cost guidance, while copper costs are anticipated to be around the top end of the company’s guidance range, reflecting higher diesel prices, local currency appreciation and royalties linked to stronger copper prices. Weather-related challenges, including severe winter storms at Veladero and drought-related water constraints at Porgera, continued into early fourth quarter but were offset by stronger performance at other sites.

Safety performance continued to improve, marking the fourth consecutive quarter of better results. Barrick completed more than 24,000 Critical Control Verifications, and its recordable injury rate declined to 0.71 from 0.77 in the prior quarter. Management stated that production and cost guidance for 2026 remain unchanged as the company heads into the final quarter of the year, with both gold and copper output expected to rise while costs stay within guidance ranges.