Barrick Charts a Strategic Course Amid Record Cash Generation

Barrick Gold Corporation is embarking on a significant strategic realignment, with several key announcements made this Friday. The moves, which include appointing a permanent CEO, planning a partial spin-off via an IPO, and implementing a substantially increased dividend, are designed to showcase how the mining giant intends to deploy its robust cash reserves. Despite reporting record-breaking figures, the market's reaction has been tinged with caution.

The company's operational performance for the fourth quarter and full year 2025 provided the financial fuel for its new direction. Quarterly revenue surged to $6.00 billion, marking a 45% increase over the third quarter. Earnings per share also saw a powerful advance, reaching $1.43—an 88% jump from Q3. On an adjusted basis, EPS came in at $1.04, surpassing analyst expectations which had clustered between $0.87 and $0.90.

The cornerstone of this performance was free cash flow. Barrick generated $1.62 billion in Q4 alone, bringing the annual total for 2025 to $3.9 billion. This represents a staggering 194% year-over-year increase and forms the capital base for the company's forthcoming initiatives.

Key Financial Highlights:
* Q4 Revenue: $6.00 billion (+45% vs. Q3)
* Q4 EPS: $1.43 (+88% vs. Q3)
* Adjusted EPS: $1.04 (above expectations)
* 2025 Free Cash Flow: $3.9 billion (+194% YoY)

Shareholder Returns and a Policy Overhaul

Investors are set for an immediate and direct benefit. The board declared a fourth-quarter dividend of $0.42 per share, a 140% hike compared to the previous quarter's payout. The record date for eligibility is February 27, 2026, with the payment scheduled for March 16, 2026.

More significant than this one-off increase is a fundamental change in dividend policy. Barrick is instituting a new framework designed to return 50% of attributable free cash flow to shareholders going forward. This replaces the prior structure and creates a much tighter link between cash generation and shareholder distributions.

Should investors sell immediately? Or is it worth buying Barrick?

Leadership, IPO Plans, and a Cautious Outlook

Alongside its capital return strategy, Barrick is planning a major portfolio restructuring. Preparations for an initial public offering (IPO) of its North American gold assets have received official approval. The new entity, referred to as "NewCo," will consolidate interests in Nevada Gold Mines, Pueblo Viejo, and the Fourmile project. The public listing is targeted for late 2026, with Barrick intending to retain a clear majority stake. An initial free float of approximately 10% to 15% is under consideration.

The leadership question has also been resolved. Mark Hill, who had served as interim leader since September 2025, was appointed permanent President and CEO on February 5, 2026.

Given these strong results and strategic announcements, why has the market response been mixed? The primary factor appears to be the company's production guidance. For 2026, Barrick forecasts gold production between 2.90 and 3.25 million ounces. This range sits slightly below the 3.26 million ounces produced in 2025. This somewhat more conservative production outlook seems to have competed for investor attention alongside the generous dividend increase.

Short-term pressure on the equity is visible in its technical posture. The share price closed yesterday at €37.26, while a Relative Strength Index (RSI) reading of 28.4 signals a significantly oversold condition following recent weakness.

In summary, Barrick is combining powerful cash generation with enhanced shareholder returns and a strategic shift toward "NewCo," all while issuing a slightly more defensive operational forecast for 2026. The next concrete milestone is already on the calendar: eligibility for the new quarterly dividend will be determined on February 27, 2026, ahead of the payment date of March 16, 2026.