Barrick’s $3B buyback and North American spinoff: key notes for mine planners
Reviewed by Tom Sullivan
First reported on MINING.com
30 Second Briefing
Barrick Mining has launched a $3 billion share buyback and confirmed plans to spin off a new “North American Barrick” company holding its Nevada joint venture, Fourmile discovery and Pueblo Viejo mine, targeting completion by end‑2026. First‑quarter net earnings jumped to $1.6 billion as the average realised gold price surged 66% year‑on‑year to $4,823/oz and all‑in sustaining costs fell 4% to $1,708/oz, despite a 5% drop in output to 719,000 oz. Operations at the Loulo‑Gounkoto complex in Mali remain below historical production as open‑pit mining restarts are delayed by equipment deterioration, parts shortages and contractor DTP’s exit.
Technical Brief
- $3 billion repurchase authorisation follows a $500 million buyback completed late last year.
- First-quarter profit declined 13% versus Q4, despite higher realised pricing and lower unit costs.
- Free cash flow reached almost $1.6 billion, beating analyst estimates for the quarter.
- North American and Latin American operations outperformed internal and analyst expectations; African assets underperformed forecasts.
- Loulo‑Gounkoto production currently relies solely on underground workings while open‑pit mining remains suspended.
- Contractor DTP’s exit from a Loulo‑Gounkoto open pit will see a local mining partner installed by year‑end.
- Equipment deterioration, spare‑parts shortages and skilled‑labour loss during shutdowns are complicating restart of suspended Mali pits.
- Mali’s national gold output is down 23% this year, with Loulo‑Gounkoto disruptions a material contributor.
Our Take
With Barrick already warning of capital and schedule pressure at the Reko Diq copper‑gold project in Pakistan, the strong free cash flow and reduced all‑in sustaining costs from its existing Nevada joint venture and Pueblo Viejo mine give it more flexibility to fund overruns without compromising the North American IPO timetable targeted for completion by end‑2026.
The 23% decline in Mali gold output and associated 600‑person contractor layoffs underscore why Barrick’s management is emphasising North American operations in its restructuring; in our database, most recent Barrick items involving security or political risk are tied to assets in Africa and Pakistan rather than Canada or the USA.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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