Barrick's Record Cash Flow Fuels North American Gold Spin-Off Plan

Barrick Mining is turning its strongest cash-generation quarter in years into a catalyst for structural change. With attributable free cash flow soaring 195% to $1.21 billion in the first quarter, the company is pushing ahead with a plan to list a minority stake in its North American gold assets by the end of 2026 — a move designed to shine a spotlight on the value buried inside its core gold portfolio.

The cash windfall comes courtesy of a gold price that has jumped 66% year-on-year, with Barrick realizing an average of $4,823 per ounce in the period. Revenue hit $5.22 billion, while operating cash flow reached $2.55 billion. The company's balance sheet swung from net debt to net cash of $2.4 billion within a year, giving management ample firepower to fund dividends, investments, and the spin-off preparation.

That operational strength was underscored by a production beat. Barrick mined 719,000 ounces of gold in the first quarter, comfortably above its own guidance range of 640,000 to 680,000 ounces and 4% higher than a year earlier. Copper output stood at 49,000 tonnes. The strong performance was led by Nevada Gold Mines, Veladero, and a faster-than-expected ramp-up at the Loulo-Gounkoto complex in Mali, which had been idled by a dispute with the government over a new mining code. The temporary administration ended on December 16, 2025, and Loulo-Gounkoto delivered 64,000 ounces in the quarter with rising monthly production.

The lower end of the cost equation also moved in Barrick's favor. All-in sustaining costs per ounce fell to $1,708, widening the margin between realized price and cost. Adjusted earnings came in at $0.98 per share, well above the LSEG consensus estimate of $0.78.

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North American gold assets get their own stage

The planned spin-off vehicle will bundle together some of Barrick's most prized holdings: Nevada Gold Mines, the Pueblo Viejo mine in the Dominican Republic, and the early-stage Fourmile project. Combined, these assets represent annual production capacity of roughly 2.0 million ounces of gold. A dedicated leadership team has already been appointed to sharpen operational focus ahead of the listing.

The timing is no coincidence. With record cash flows flowing in, Barrick can afford to invest in both the structural overhaul and its payout policy. The quarterly dividend has been set at $0.175 per share, payable on June 15 to shareholders of record on May 29.

Copper projects face a mixed outlook

Not every part of Barrick's portfolio is accelerating. The Reko Diq copper-gold project in Pakistan is being slowed down due to heightened regional security concerns, with a full review of the timeline now expected to run until mid-2027. Nonetheless, Barrick reiterated its broader copper production target for 2026 of between 190,000 and 220,000 tonnes.

The Lumwana expansion in Zambia remains the key growth driver in copper. The super-pit project is on track for first production at the end of the first quarter of 2028, with capital expenditures for this year expected to land at the low end of the $750 million to $850 million range. The total project cost is estimated at around $2 billion, and once complete, Lumwana's annual copper output will more than double from 117,000 tonnes to 240,000 tonnes.

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What's next on the production front

For the current quarter, Barrick is guiding for gold production of 730,000 to 770,000 ounces, with additional contributions expected from Loulo-Gounkoto, Goldrush in Nevada, and later in the year from Kibali in the Democratic Republic of Congo.

The company's stock has already priced in much of the good news. Shares closed at C$64.40 on Monday, up 22% over the past seven days and 156% higher than a year ago. The real test will come when the North American spin-off hits the market, forcing investors to decide whether Barrick's premium gold assets are worth more standing alone than buried within the broader corporate structure.

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