Barrick Shares Dip Despite Strong Q4 Earnings, IPO Announcement

TLDR

• Barrick Gold’s fourth-quarter net earnings increased by 151% year-on-year, reaching $1.43 per share.
• The company’s operating cash flow rose by 96%, reaching $2.73 billion, while free cash flow tripled to $1.62 billion.
• Barrick confirmed plans to spin off its North American gold assets through an IPO expected to be completed by late 2026.
• Despite strong financial results, Barrick shares fell nearly 5% due to the IPO announcement.
• Barrick’s gold production in Q4 totaled 871,000 ounces, slightly missing analysts’ estimates but surpassing consensus projections.

Barrick Gold Corp. (TSX:ABX, NYSE:GOLD) saw a nearly 5% drop in its shares despite posting strong fourth-quarter earnings. The Toronto-based company’s solid financial results were overshadowed by the announcement of plans to spin off its top North American assets through an initial public offering (IPO). Barrick confirmed it would proceed with the IPO of its North American gold assets, which includes stakes in major projects such as Nevada Gold Mines and Pueblo Viejo.

Barrick Reports Strong Earnings for Q4

Barrick Gold’s fourth-quarter net earnings surged by 151% year-on-year, reaching $1.43 per share. The company credited higher gold prices and strong operational performance for the earnings growth. In addition, attributable EBITDA climbed to $3.08 billion, marking an 82% increase compared to the same period last year.

Operating cash flow rose by 96%, reaching $2.73 billion, while free cash flow more than tripled to $1.62 billion. Barrick’s robust financial performance in Q4 highlighted its strong operational execution. Despite the solid results, Barrick shares faced a drop, with the company focused on plans for future restructuring through its North American IPO.

Barrick Shares Fall as IPO Plans Unfold

Barrick shares dropped nearly 5% following the announcement of the IPO for its North American assets. The company revealed it would spin off its stakes in major projects such as Nevada Gold Mines and the Pueblo Viejo project in the Dominican Republic. Despite the drop in Barrick shares, analysts maintained a “Buy” rating, citing the company’s strong quarterly earnings and conservative 2026 guidance.

The IPO is expected to be completed by late 2026, with Barrick retaining a controlling interest in the new entity. Mark Hill has been appointed as CEO to oversee the process. Barrick’s gold production for the quarter totaled 871,000 ounces, slightly missing estimates but exceeding consensus forecasts.

Production and Forecast for the Coming Years

Barrick provided a three-year production outlook, with expectations to produce between 2.9 and 3.25 million ounces of gold in 2026. The company expects production to increase in the following years, reaching between 3.3 and 3.65 million ounces in 2027. Copper production is also projected to fall between 190,000 and 220,000 tonnes in 2026, at C1 cash costs of $2.20 to $2.45 per pound.

Despite the strong financial performance, Barrick shares faced downward pressure due to investor concerns over the spin-off.

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