Barrick Gold Considers Spinning Off Core North American Mines

Following a period of robust financial performance, Barrick Gold Corporation is advancing plans to potentially list its key North American gold mining assets on the public market. This strategic review, coupled with a significant dividend increase and new capital return framework, signals a multi-faceted approach to enhancing shareholder value.

The fourth quarter of 2025 proved exceptionally strong for the mining giant. The company reported a record quarterly operating cash flow of $2.73 billion, with free cash flow reaching $1.62 billion. These figures represent sequential growth of 13% and 9%, respectively, over the third quarter.

Operational metrics were equally positive. Gold production for Q4 2025 came in at 871,000 ounces, a 5% increase from the prior quarter. Earnings per share hit a quarterly record of $1.43, a substantial 88% jump, while adjusted earnings per share were $1.04, up 79%. For the full year, production met guidance, with 3.26 million ounces of gold and 220,000 tonnes of copper delivered.

The Proposed "NewCo" Initial Public Offering

Barrick's board has authorized management to begin preparations for an initial public offering (IPO) of a new entity, tentatively referred to as "NewCo." This vehicle would hold the company's premier North American gold assets, including:
* Its joint venture interests in Nevada Gold Mines and Pueblo Viejo.
* The wholly-owned Fourmile gold discovery in Nevada.

The company has set a tentative target for the IPO's completion in late 2026. Barrick intends to retain a significant majority stake in NewCo following any public listing. The final decision to proceed will depend on market conditions, regulatory approvals, and a final board endorsement.

Enhanced Capital Returns to Shareholders

In a parallel development, Barrick announced a substantial dividend for Q4 2025 of $0.42 per share, payable on March 16 to shareholders of record as of February 27. This payout marks a 140% increase over the dividend distributed in the third quarter.

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

Furthermore, the company is instituting a new, formalized dividend policy. The framework targets a total payout of 50% of attributable free cash flow on an annualized basis. This will consist of two components:
1. A fixed base dividend of $0.175 per share per quarter, which the company notes is a 40% increase.
2. A performance-linked supplemental dividend paid at year-end, calculated based on the annual attributable free cash flow.

The company also completed $1.50 billion in share buybacks during 2025, repurchasing approximately 3.0% of its outstanding shares.

Leadership and Forward Guidance

Barrick has appointed key personnel to lead the potential separation process. Mark Hill has been named President and CEO of the proposed NewCo and has also been elevated to the board as a non-independent director. Additionally, Robert Samek has joined Barrick's board of directors.

Looking ahead to 2026, the company provided the following production guidance ranges:
* Gold: 2.90–3.25 million ounces
* Copper: 190,000–220,000 tonnes

The key milestones for investors to watch will be the progression of the potential IPO timeline toward late 2026 and the execution of the new capital return policy, including any year-end supplemental dividend.