Barrick Launches $3 Billion Share Buyback Ahead of North American Spinout
Barrick Mining Announces $3 Billion Share Buyback as Gold Prices Drive Strong Earnings Growth
Barrick Mining has announced a $3 billion share buyback program as the company moves to strengthen shareholder returns ahead of the planned spinout and public listing of its North American assets.
The Toronto-based gold producer unveiled the repurchase plan after reporting strong first-quarter financial results, supported by record gold prices and solid free cash flow generation.
The move expands the company’s shareholder return strategy following a $500 million buyback completed late last year.
Barrick is preparing to create a new company that will include its Nevada joint venture, the Fourmile gold discovery, and the Pueblo Viejo mine in the Dominican Republic.
The spinout and IPO are expected to be completed by the end of 2026.
“Following strong operational execution and robust free cash flow, this authorization is intended to return capital to shareholders at a time when Barrick believes its shares offer exceptional value, particularly ahead of the planned IPO of North American Barrick,” the company said.
The restructuring comes amid broader operational and leadership changes at the miner. Earlier this year, Mark Hill was appointed CEO following the departure of longtime chief executive Mark Bristow in September.
Barrick has also signaled plans to pursue acquisitions while reducing exposure to higher-risk jurisdictions as part of its strategy to improve long-term valuation and operational stability.
Gold Prices Boost Earnings
Barrick exceeded analyst expectations in the first quarter as soaring gold prices offset lower production levels and significantly boosted profitability.
The company reported net earnings of $1.6 billion, more than triple the level recorded a year earlier, despite gold production declining 5% to 719,000 ounces.
Barrick’s average realized gold price surged to $4,823 per ounce, while all-in sustaining costs fell 4% to $1,708 per ounce.
Free cash flow reached nearly $1.6 billion, supported by strong performances from the company’s North American and Latin American operations.
“We started the year with another strong quarter,” CEO Mark Hill said. “Building on the momentum from Q4, we outperformed our production and cost targets while maintaining a strong focus on operational safety.”
Hill added that Barrick remains focused on meeting full-year production guidance, advancing growth projects on schedule, and completing the North American IPO to unlock additional shareholder value.
Following the earnings release, Barrick’s shares rose nearly 8% in New York trading and gained more than 8% on the Toronto Stock Exchange, giving the company a market value of approximately C$106 billion.
Mali Operations Recovering
Barrick also provided an update on its Loulo-Gounkoto mining complex in Mali, where operations are recovering faster than expected after months of disruption.
The company said production continues from the underground mine and confirmed that the planned ramp-up remains on track despite the departure of contractor DTP from one of the open pits.
Barrick intends to replace the contractor with a local partner before mining activities resume later this year.
The Loulo-Gounkoto complex had faced operational challenges linked to provisional state administration and prolonged shutdowns, which contributed to a decline in Mali’s national gold output this year.
Barrick regained control of the operation in December but acknowledged that restarting suspended activities has been complicated by equipment deterioration, shortages of spare parts, and the departure of skilled workers during the shutdown period.
The company reiterated that it remains committed to optimizing its global portfolio through disciplined acquisitions and reduced exposure to politically riskier regions.
