Gold Production Above Guidance
Barrick produced 719,000 oz of gold in Q1 2026, above guidance and up 4% year-over-year, driven by a 10% YoY increase in North America and strong performance at Veladero and Loulo-Gounkoto.
Barrick Mining
· B
May 11th, 2026
Summary
- Earnings Call Date:
- 2026-05-11
- Change Since:
- -22.09%
- Next Earnings Date:
- 2026-08-10
Earnings Call Sentiment
PositiveThe call emphasized strong operational delivery and a step-change in financial performance (production above guidance, double-digit EBITDA growth, materially higher free cash flow, $2.4B net cash, $3B buyback and a regular dividend) and outlined clear progress on key growth projects (Lumwana, Fourmile) and the North America IPO timeline. These positives were offset by important risks and challenges: safety has improved but is still short of targets, Reko Diq faces contractor and security-driven uncertainty with material holding costs (~$20M/month), throughput/recovery work remains at Pueblo Viejo, and there are contractor/country risks in parts of Africa. On balance the highlights and durable financial/operational improvements materially outweigh the cited issues, though management continues to monitor and address the lowlights.
Company Guidance
Management said 2026 production and cost guidance remains unchanged and gave Q2 gold guidance of 730,000–770,000 oz (up from Q1’s 719,000 oz and with higher production expected in Q3 and Q4), with copper production expected to be stronger in H2 (Q1 copper was ~49,000 t). They reaffirmed Lumwana expansion on track for the original ~$2.0 billion budget and to lift mill throughput from 27 million to 52 million tpa and copper output from ~117,000 tpa to ~240,000 tpa (first copper from the expansion by Q1 2028), and Fourmile PFS is targeted for 2028 with expanded drilling through 2026. The North American gold IPO remains on track for completion by end‑2026 (filings/marketing late summer/fall), capital returns include a quarterly base dividend of $0.175/share plus a year‑end top‑up (targeting a payout ratio) and a $3.0 billion buyback authorization, and the company cited balance‑sheet flexibility with $2.4 billion net cash, an undrawn $3.0 billion revolver and no meaningful debt maturity until 2033.
Strong Financial Performance and Margin Expansion
Attributable EBITDA roughly doubled year-over-year (reported +103% by management) and adjusted net earnings rose 173% YoY. Management highlighted substantial margin expansion supported by higher realized gold prices (management cited a ~66% increase in realized gold price).
Robust Cash Generation and Improved Balance Sheet
Free cash flow metrics improved materially: management cited free cash flow increases of up to +320% to $1.6B (company total) and attributable free cash flow up 195% YoY to $1.2B. Net cash at quarter-end was $2.4B with an undrawn $3B revolver and no material debt maturities until 2033.
Shareholder Returns Strengthened
Board approved a quarterly base dividend of $0.175 per share and a $3.0B share buyback authorization. Management reiterated a year-end top-up dividend policy (targeting 50% of attributable free cash flow as a top-up) independent of the buyback.
Operational Momentum at Key Assets
Nevada Gold Mines showed improved productivity (record underground tonnages expected for the year); Carlin roasters and Sage autoclave achieved multi-year throughput highs. Loulo-Gounkoto ramp-up progressed ahead of plan and made an earlier-than-expected contribution to attributable EBITDA.
Copper Growth Projects on Track
Copper production for the quarter was 49,000 t (in line with plan) with copper production up ~11% YoY. Lumwana expansion remains on track for original ~$2B budget and lower-end 2026 capital guidance; expansion will increase throughput from 27M to 52M tpa and copper production from ~117k to ~240k tpa (+100%). First copper from expansion expected by Q1 2028.
Progress on Strategic Growth and IPO Plan
Fourmile continued to advance (PFS targeted by 2028) and is being de-risked; management remains on track to complete the proposed IPO of North American gold assets by year-end 2026, with filings/market access planned late summer/fall.
Turning now to our Q1 highlights. Barrick produced 719,000 oz of gold in the quarter, above guidance and an increase of 4% from a year ago. There were three drivers
a 10% year-on-year increase in production in North America, along with strong performance at both Veladero and Loulo-Gounkoto. On the copper side, we produced 49,000 tons in line with the plan.
What is important is that these results were not driven by price alone. The higher gold price clearly helped, but it amplified improvements already occurring in the business
better operating performance, cost discipline, portfolio optimization, and stronger capital efficiency. This is what gives these results real quality and durability.