Barrick Mining Corporation, a Canada-based global leader in gold mining, reported robust financial results and announced plans to spin off its premier North American gold assets through an initial public offering. The IPO announcement comes as the world's second-largest gold producer aims to reposition itself to capitalize on unprecedented gold price surges and generate stronger profits, after years of underperformance relative to peers in the gold mining sector.
Media reports indicate that activist investment firm Elliott Investment Management has acquired a significant stake in Barrick. Companies receiving Elliott investments have historically experienced substantial stock price increases.
According to the latest earnings report, Barrick achieved record quarterly cash flow and earnings per share. The company's 2025 gold and copper production figures were largely in line with analyst expectations.
Gold production in the fourth quarter increased by 5% compared to the third quarter, reaching 871,000 ounces. Total fourth-quarter revenue reached approximately $6 billion, representing a significant year-over-year increase of 64.4% and exceeding market expectations by about $840 million. Sequentially, revenue grew by 45%.
Driven by a 70% surge in gold prices during 2025 and substantial copper price increases fueled by AI data center construction and new energy demand in the second half of the year, Barrick achieved record quarterly cash flow. Operating cash flow reached approximately $2.73 billion, while free cash flow amounted to about $1.62 billion, representing sequential increases of 13% and 9%, respectively.
The mining giant also reported record quarterly earnings per share. Fourth-quarter GAAP EPS reached $1.43, with non-GAAP adjusted EPS at $1.04, reflecting sequential increases of 88% and 79%, respectively, both significantly surpassing Wall Street consensus estimates.
Additionally, the company declared a quarterly dividend of $0.42 per share, representing a 140% increase compared to the third-quarter dividend. Beginning in the fourth quarter of 2025, Barrick's new dividend policy targets distributing at least 50% of attributable free cash flow to shareholders. This includes raising the base quarterly dividend by 40% to $0.175 per share, supplemented by potential year-end performance-based distributions.
For 2026 production guidance, Barrick expects gold production between 2.9 million and 3.25 million ounces, and copper production between 190,000 and 220,000 metric tons.
In a statement released Thursday, Barrick indicated it will sell a minority stake in a newly formed North American mining subsidiary while retaining a "significant" majority ownership. Management anticipates completing the IPO by the end of 2026.
The spin-off will include the company's interests in its Nevada joint venture, the recently developed Fourmile project, and a mine in the Dominican Republic. Assets in higher-risk jurisdictions such as Africa and Pakistan will remain with the parent company.
The company stated, "After thorough analysis, the board has decided to advance preparations for an IPO of Barrick's North American gold assets to maximize shareholder value."
Bloomberg Intelligence analyst Grant Sporre commented that if investors value Barrick's North American assets at premiums similar to those of peer Agnico Eagle Mines Ltd., these assets could be valued at nearly $62 billion. However, the separation could also make the new entity more vulnerable to acquisition interest.
Since his emergency appointment following the sudden departure of former CEO Mark Bristow in September, interim CEO Mark Hill has implemented sweeping changes, including reorganizing regional operations and reshuffling the senior management team. Barrick had previously experienced declining gold production despite rising gold prices, resulting in valuation discounts compared to industry peers.