Barrick Mining Q4 2025 Earnings Call Transcript

Quartr
Provided by Quartr
February 5, 2026

Key Takeaways

  • Positive Sentiment: We delivered record free cash flow and other financial highs in 2025, returned capital via a $1.5 billion buyback and a materially higher dividend, and the board adopted a new dividend policy targeting a 50% payout of attributable free cash flow.
  • Positive Sentiment: An operational review led to organizational changes (including moving PV into North America, new leadership and a CTO), bottom-up mine plans and stronger confidence in 2026 guidance after improved performance at Carlin, PV throughput records and Lumwana ramping up.
  • Negative Sentiment: Safety remains a material concern after four fatalities in 2025; management says safety is the top priority for 2026 and will change remuneration and bonus structures to emphasize safety first.
  • Negative Sentiment: Pascua‑Lama/PV recoveries are below original feasibility (currently ~75–76% vs 90% in the feasibility study), the company now targets ~84% LOM recovery, has extended life of mine, and will publish an updated 43‑101 at the end of February with more detail.
  • Neutral Sentiment: The board approved preparations for an IPO of Barrick’s North American gold assets aiming for late‑2026 (likely a minority 10–15% offering per comments) to unlock value, but specifics on size, structure and governance remain under development.
AI Generated. May Contain Errors.
Earnings Conference Call
Barrick Mining Q4 2025
00:00 / 00:00

Transcript Sections

Skip to Participants
Operator

Welcome everyone to Barrick's fourth quarter 2025 results presentation. At this time, all participants are in listen-only mode. As a reminder, this event is being recorded, and a replay will be available on Barrick's website later today. I will now turn the call over to Cleve Rueckert, Head of Investor Relations. Please go ahead.

Cleve Rueckert
Cleve Rueckert
Head of Investor Relations at Barrick Mining Corporation

Thank you, Mariana, and good morning, everyone. We hope you've had an opportunity to review the press release we issued before the markets opened this morning. This presentation deck is also now available to download on our website. Presenting our results today are Mark Hill, Barrick's President and CEO, and Graham Shuttleworth, Senior EVP and CFO. Other members of Barrick's management team will be available after our prepared remarks for Q&A. Before we begin, please note that we will be making forward-looking statements. This slide includes a summary of the significant risks and factors that could affect Barrick's future performance and our ability to deliver on these forward-looking statements. This material is also available on our website. I will now hand it over to Mark.

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

Okay, thanks, Cleve, and thanks, everyone, for joining us for this call this morning. Barrick finished the year in very good condition. We delivered on our 2025 operating plan, and this resulted in multiple financial records. We also completed the operational review, review we discussed last quarter and have taken a number of actions which I will touch on later. We achieved a resolution to the dispute in Mali, securing the release of our detained colleagues and resuming control of the asset. Record free cash flow allowed us to repurchase $1.5 billion of our shares, as well as, as increasing our dividend. Turning to our performance in Q4, we built on last quarter's momentum and posted strong financial results. As I said, we logged several company records, including adjusted earnings per share, cash flow, and importantly, shareholder returns.

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

Production increased from last quarter to the highest level of the year, which resulted in 82% increase in EBITDA versus last year. We increased our base dividend by another 40% and adopted a new dividend policy. Cash flow for the quarter was up 96% from last year, and we logged a year of record annual cash returns to our shareholders. Lumwana continues to grow, and we're excited about advancing this 100% owned gold asset, asset. Finally, consistent with the announcement we made in December and following rigorous analysis, the board has decided to move forward with preparations for an initial public offering of Barrick's North American gold assets, aimed at maximizing the shareholder value. We are targeting to complete the IPO by late 2026, and we'll keep you updated on progress throughout the year.

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

But turning to safety and health, our operational and financial achievements were overshadowed, unfortunately, last year with four fatalities. Last quarter, I made that commitment to making sure safety was our top priority, and this continues to be the company's number one focus for 2026. Clearly, there's more to be done because Q4 wasn't where we needed it to be. But our highest priority is that all our people go home safe and healthy at the end of each day, and I'll continue to work with myself and the ExCo team to achieve and maintain that goal going forward. And moving on to the operational highlights. Operationally, our business performed well in Q4, and importantly, we delivered on our guidance to steadily lift production throughout the year.

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

Gold production was 5% higher than Q3, driven by a 25% increase at Carlin and quarter-on-quarter increases across the NGM site. Our processing facilities ran well, and PV throughput rose to another record high. Full-year gold production of 3.26 million ounces was in line with our guidance. Copper production increased 13% from Q3, driven by higher throughput at Lumwana. Also, as I said before, we completed the operational review we discussed in the last quarter. So some important outcomes of that, we've now restructured our business units, putting PV in North America region, which places all our key autoclave processing facilities under common leadership so that we can share best practices. Tim Cribb, previously overseeing Reko Diq, has moved to take over North America. Operational ownership, particularly Nevada, is back in the hand of the operator.

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

The mine plans have been reviewed from the bottom up, and we're entering 2026 with high confidence in our guide. I'll touch on this work a bit later, but now let me turn it over to Graham to discuss the financial highlight. Thanks, Graham.

Graham Shuttleworth
Graham Shuttleworth
Senior EVP and CFO at Barrick Mining Corporation

Thank you, Mark. As most of you will know, this is my last earnings call, and I must say it is a real pleasure to finish on such a high note. Quarter four was a record quarter across almost every financial metric. The combination of our sequential increase in production and record-high gold prices added to our strong financial foundation and sets us up with a lot of flexibility going forward to continue delivering significant cash returns to shareholders. Shown here on the right, revenues increased 45% from quarter three, driven by increased production and sales and a 21% increase in our realized gold price. Net earnings nearly doubled from the prior quarter, and we reported record quarterly cash flow, free cash flow, earnings per share, and a record cash balance.

Graham Shuttleworth
Graham Shuttleworth
Senior EVP and CFO at Barrick Mining Corporation

For the year, we reported $7.7 billion of cash flow from operations and $3.9 billion of free cash flow, up 71% and 194% from a year ago, and another company record. When you consider our gold sales volume declined 13% in 2025, with one of our key assets not operating for most of the year, those results are even more impressive, and we're excited about the year ahead. Attributable CapEx ended 2025 below the low end of our guidance, as our engineering partners came on board and we refined our spending schedules, particularly at our biggest projects at Reko Diq and Lumwana. The graphs on the right-hand side of this slide highlight Barrick's financial value position.

Graham Shuttleworth
Graham Shuttleworth
Senior EVP and CFO at Barrick Mining Corporation

Our attributable EBITDA increased 53% versus the prior quarter on higher margins, as a 21% increase in the gold price dropped to the bottom line. Importantly, we steadily increased our attributable EBITDA margin through the year, tracking the gold price higher and demonstrating the operating leverage our business provides to the gold price. All of this enabled the highest annual shareholder returns in Barrick's history, with more to come. We ended the year with a net cash position of $2 billion. Building on the capital allocation framework we highlighted last quarter, Barrick's balance sheet is in phenomenally good shape, and our future capital investment programs are well-funded. Suffice to say, Barrick is generating significant excess cash flow in the present environment.

Graham Shuttleworth
Graham Shuttleworth
Senior EVP and CFO at Barrick Mining Corporation

As I mentioned earlier, we generated $7.7 billion in operating cash flow, of which we reinvested $3 billion back into the business and bought back $1.5 billion of our stock, reducing our share count by 3%. You will recall that with our Q3's results, we increased the base dividend by 25% to $0.125 per quarter. On the back of the strong annual results, the board has authorized a further 40% increase to $0.175 per quarter. In addition, the board has determined that it will target to pay out 50% of attributable free cash flow, incorporating a further discretionary component to reach the target.

Graham Shuttleworth
Graham Shuttleworth
Senior EVP and CFO at Barrick Mining Corporation

On this basis, the board has authorized a Q4 dividend, payable in March, of $0.42 per share, which is a 140% increase on the Q3 dividend. This new policy will replace the previous performance dividend policy, and at the same time, given the focus of cash returns to shareholders through increased dividends, the board has determined not to renew the annual share buyback program. I will now turn the call back over to Mark.

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

Okay, thanks, Graham. So turning back to our operation and looking first at North America, where we had a strong performance. Gold production increased 11% from last quarter, driven by a 25% quarter-on-quarter increase at Carlin. Phoenix production hit its guidance range for the year, while Cortez and Turquoise Ridge achieved the top end of their range. Importantly, we did not high-grade the operation at the end of the year. We rather maintained focus on consistent, disciplined delivery and compliance to our plan. As a result, we are seeing a smoother transition from December into January. This has helped to achieve one of the best starts to the year since the NGM joint venture was established. The Carlin Roaster had its highest January throughput in the last five years.

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

In fact, the new management team and the focus on operational discipline, the processing and team at Carlin has delivered its best 60 days since the formation of the joint venture. The underground mines at Carlin, Turquoise Ridge, and Goldrush have also had their best January since the joint venture formation in terms of tons mined and developed. This performance is exactly what we wanted to achieve from the operational review we highlighted last quarter. The teams have rebuilt their plans from the bottom up, based on achievable metrics. The mines implemented this disciplined approach to their operation, enabling delivery of a solid result in Q4 and now in January. It is also clear that we've experienced challenges attracting and retaining talent at NGM. As a result of that, we have looked at many employment conditions as part of the operational review.

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

We'll be adjusting the remuneration framework to help attract and retain the best people, and importantly, we'll be simplifying the bonus structure at the operational level to focus clearly on safety, our number one focus for the year, and then production, costs, and growth. We also restructured the executive team, both at the group level and in North America. We've added a Chief Technical Officer, Megan Tibbles, and an evaluation team. So this brings stronger operational experience into our senior leadership. PV had a better year, with plant throughput up 12% and gold production up 8% from 2024. That said, the recoveries are not where we expected them to be. As we said last year, the main issue is the performance of the weathered stockpile.

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

There is metallurgical inconsistency across those 90 million tons of stockpiles, and we are not getting the same results in the plant that we saw in the lab for the initial feasibility study. We undertook extensive test work in 2025, and this will be reflected in the updated 43-101 report, which is due out next month. So although the life of mine recovery rate is lower, we have been able to extend the life to 2028, or 2048, maintaining the total overall output produced. Work on the new TSF is progressing well, and the housing project is well advanced, with more than 600 homes constructed and over 300 families now resettled. So just briefly on Fourmile, which continues to demonstrate its potential as a world-class gold asset in Nevada. 2025 was a major de-risking year.

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

We successfully delivered on our commitment to double Fourmile's resource at a higher grade, and as you can see from this updated model, there's a lot more to come. The next step will be working on the Bullion Hill declines, which will enable efficient resource conversion from underground access. So moving down to South America and Asia Pacific region, which include Veladero and Porgera. This region also performed well against its plan in the quarter and the year. Veladero exceeded the top end of its 2025 guidance and beat its cost guidance by over $100 per ounce. Work is continuing at Veladero to expand the result. In the same vein, Porgera achieved the top end of its guidance range while keeping costs within guidance, demonstrating strong operational flexibility.

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

So on Africa, Middle East region, they achieved their production guidance and on point for the seventh consecutive year. And as I've said, we successfully resolved the dispute in Mali during the release of our incarcerated colleague. At Kibali, the Ark discovery delivered significant progress in 2025, adding 3.5 million ounces to resources, including 1 million converted to reserve. Further drilling in 2026 is expected to continue to grow this high potential discovery. North Mara reported a strong finish to 2025, with production in the top half of its 2025 guidance range, and Bulyanhulu overcame grade dilution and dewatering challenges in Q4, ending the year within guide. So we regained operational control at Loulo-Gounkoto at the end of the year, and we are ramping up the most accretive areas of the mine. We expect production to steadily increase throughout the year.

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

And lastly, copper. So Lumwana finished the year on a high, with production up 11% over Q3, thanks to higher throughput, ending the year with a record high annual production. C1 cash costs were up in the quarter due to the higher maintenance and interim power cost, and the Super Pit expansion is tracking slightly ahead of schedule, with good progress during the quarter on the mill building, which is on the project's critical path. Okay, so let's move over to guidance for 2026. So we expect our gold production to be in the range of 2.9-3.25 million ounces. Our 2025 gold production, as I said, was 3.26 million ounces.

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

But to give you a like for like comparison, that's about 3 million ounces if we remove Tongon and Hemlo, which was sold at the end of the year. We expect Loulo-Gounkoto's ramp up to be the main contributor to the production increase in 2026, along with slightly higher production from PV. Carlin and Turquoise Ridge production is expected to be marginally lower due to the open pit sequencing and the grade in the mine plan. Across the year, we're expecting gold production to be split about 45% in the first half and 55% in the second. Higher production in quarters 3 and 4 will come from the ramp-ups of Loulo-Gounkoto and Goldrush, and the timing of the shutdown at NGM.

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

For copper, we're guiding 190,000-220,000 tons, which compares to the annual production of 220,000 tons in 2025. Production is expected to be highest in quarters 2 and 3, and lowest in Q1, mainly driven by grade at the mine. Looking a bit further ahead, we continually expect production uplift in 2027 and again in 2028. Turning now to reserves and resources. For our 2025 gold price assumptions, we used $1,500 per ounce for reserves and $2,000 per ounce for resources, both modestly higher than last year. And for copper reserves, we used $3.25 per pound for reserves, and $4.50 for resources.

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

So today, Barrick, we hold one of the largest reserve and resource bases in the industry, and as of year-end, Barrick's attributable proven and probable gold reserves totaled 85 million ounces. On the resource side, attributable measured and indicated gold resources totaled 150 million ounces, with a further 43 million ounces of inferred resource. While there were declines as a result of divestitures, we continue to see strong organic growth across the assets in Nevada and at PV. Turning briefly to copper, attributable proven and probable reserves remained stable at 18 million tons. Copper resources increased, with measured and indicated resources of 24 million tons and an additional 4 million-plus tons in the inferred category. Overall, our reserve and resource base continues to support long mine lives and a strong production outlook.

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

So just to wrap up, in 2025, we demonstrated disciplined execution, delivering on our operating plan, strengthening our balance sheet, advancing our growth pipeline, and returning record cash to shareholders. Looking ahead, we enter 2026 with momentum, flexibility, and a clear plan forward. So just before we move to question, I just want to acknowledge Graham and thank him for his leadership and significant contribution he has made to Barrick over the past seven years. Under Graham's stewardship, we strengthened our balance sheet, reinforced capital discipline, and delivered record financial performance and shareholder return. So on behalf of everyone at Barrick, I want to thank him for his commitment and wish him well in his future.

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

Also, as announced, Helen Cai will be joining us as CFO on March first, and I look forward to working with Helen as we continue to execute our growth strategy and drive long-term value for the shareholders. So thank you, everyone, for your continued support. And I will just remind you, I have just about the whole Exco team sitting around the table with me, so, we should be able to manage any questions that you have. I'll hand it back to the moderator. Thank you.

Operator

Thank you. For the Q&A session, we'll use the Raise Hand feature in Zoom. If you'd like to ask a question, click on the Raise Hand button at the bottom of your screen. Once prompted, please unmute yourself and go ahead. We'll now pause for a moment to assemble the queue. Our first question comes from Daniel Major at UBS Securities. Daniel, your line is open. You may unmute and ask your question.

Daniel Major
Daniel Major
Managing Director and Head of European Mining Research at UBS Securities

Hi, can you hear me okay?

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

Yeah, we can hear you, Daniel.

Daniel Major
Daniel Major
Managing Director and Head of European Mining Research at UBS Securities

Great, thanks. And, just Graham, good luck, good luck in the future. Yeah-

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

Thanks, Dan.

Daniel Major
Daniel Major
Managing Director and Head of European Mining Research at UBS Securities

My first question focuses, my first question is just around the IPO potential. And really, I guess it's a question of strategic level, why you believe a partial IPO of NGM and PV would unlock more value to you than a full separation of those assets from the remainder of the group. I mean, if we look at previous examples in the sector, you know, conglomerate discounts exist due to complexity of organizations, and this won't dramatically reduce the complexity of Barrick.

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

Okay, thanks, Daniel. I'm gonna hand it over to Graham.

Graham Shuttleworth
Graham Shuttleworth
Senior EVP and CFO at Barrick Mining Corporation

Thanks, Dan. Dan, I think, as you can imagine, the board and the team have gone through a lot of different permutations. And you'll recall we spoke about this last year as well when we first mentioned the opportunities that we were examining. And, you know, they've done a lot of analysis and looked at different outcomes, different permutations. And at the end of the day, they feel that this is the best opportunity that's gonna drive value uplift for shareholders. You know, we believe it that the current portfolio of assets in North America is substantially undervalued within Barrick. And by doing the North American IPO, we'll be able to shine a light on that valuation, and that light will then translate into a re-rate for all Barrick shareholders.

Graham Shuttleworth
Graham Shuttleworth
Senior EVP and CFO at Barrick Mining Corporation

So that's the focus, that's the intention, and at the end of the day, we, you know, that was the view from the board, that that was gonna drive the most value of all of those options.

Daniel Major
Daniel Major
Managing Director and Head of European Mining Research at UBS Securities

Okay, thanks. And then maybe a follow-up question then, on what would be the intended proceeds from the IPO.

Graham Shuttleworth
Graham Shuttleworth
Senior EVP and CFO at Barrick Mining Corporation

Thanks, Dan. Yeah, I think-

Daniel Major
Daniel Major
Managing Director and Head of European Mining Research at UBS Securities

Use of proceeds, sorry.

Graham Shuttleworth
Graham Shuttleworth
Senior EVP and CFO at Barrick Mining Corporation

Again, you know, we're in the middle of that process at the moment. There's still a lot of work that's gonna have to be done between now and when we go live, and as we indicated, that's likely to be in the fourth quarter. All of that will be determined as part of the preparation work for the IPO.

Daniel Major
Daniel Major
Managing Director and Head of European Mining Research at UBS Securities

Okay, thanks. And then just maybe another follow-up on this similar, similar topic. Have you had a discussion with Newmont around the clauses in the JV agreement of, pertaining to changes of ownership, of the Nevada JV?

Graham Shuttleworth
Graham Shuttleworth
Senior EVP and CFO at Barrick Mining Corporation

Thanks, Dan. Yeah, I think, as you can imagine, you know, we, we're very well aware of all of the legal contracts and documents that we have, and we would always honor and respect those, those, contracts and documents. You know, we're comfortable with the, the progress that we're making, and we'll continue to progress down this road.

Daniel Major
Daniel Major
Managing Director and Head of European Mining Research at UBS Securities

Okay, great. Actually, if I could just get one more in, Graham, just what's the latest on the Reko Diq financing?

Graham Shuttleworth
Graham Shuttleworth
Senior EVP and CFO at Barrick Mining Corporation

Thanks, Dan. Yeah, I mean, as you saw in the press release, the board and the management are a little concerned about the security situation on the ground in Balochistan, where there's been some escalation in security events there. And as you know, our primary focus on everything we do is the safety and security of our people. So, they've asked us to do a review of that situation, and so clearly, as part of that review, you know, we've indicated to the lending consortium that, you know, we need to complete that before we can close the financing. So, we'll work through that and then we'll take it forward after that.

Daniel Major
Daniel Major
Managing Director and Head of European Mining Research at UBS Securities

All right. Thanks a lot, and thanks a lot, and good luck.

Graham Shuttleworth
Graham Shuttleworth
Senior EVP and CFO at Barrick Mining Corporation

Thank you.

Operator

Our next question comes from Fahad Tariq at Jefferies. Fahad, your line is open. You may unmute and ask your question.

Fahad Tariq
Fahad Tariq
VP and Senior Equity Research Analyst at Jefferies

Great, thanks for taking my question. Mark, right at the outset, you mentioned that at Nevada, you've done a comprehensive mine plan review from the bottom up. Can you maybe talk a little bit more about how that's changed and has been reflected in the updated guidance, and maybe particularly on Carlin?Thanks.

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

Okay, sure. I'll give a bit of an introduction, and then I'll hand it actually over to Tim, the new COO. So look, we went back to the teams, and there had been some top-down numbers generated over the last 12 months. And so we just asked the-

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

-the teams to go back and run the mine plans using, you know, current productivities that we are actually achieving, and then building in, obviously, upside for productivity improvements only if there was an actual plan and a target to get up to those productivities. So it wasn't just a, "Let's increase things by 10%." Unless there's an actual plan for that continuous improvement, then it was taken out. So it's why I said at the end, too, that we have a much higher confidence, and certainly in January we're off to a good start, of achieving our guidance. But I'll hand over to Tim, if you want to add anything to that.

Tim Cribb
Tim Cribb
COO at Barrick Mining Corporation

Yeah. Thanks, Mark. I think, you know, as Mark said, it's about that certainty in delivery of the plan. So you will see, some reductions, in some of the, the mines, like you have probably noticed, in Carlin. So we do see some of them having a lower production, but we're much more confident in the delivery of that production, and I think, as Mark said, and as he highlighted in the, in the outset, that performance at the Carlin Roaster, having a record throughput in the last 60 days, since the joint venture was formed, that highlights when you can move to a planned maintenance structure, and we can cut out the, interruptions and the reactive maintenance. Overall, we expect to get a better result.

Tim Cribb
Tim Cribb
COO at Barrick Mining Corporation

I think, you know, that's at the core of why we reset these plans and built them on actual past performance.

Fahad Tariq
Fahad Tariq
VP and Senior Equity Research Analyst at Jefferies

Okay, great. And then just on Reko Diq, because you were asked about it in the previous question. Is it fair to assume that all options are on the table, up to and including divesting the asset? Thanks.

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

Look, I think it's too early to say that. I mean, we had the board meeting yesterday, and they basically asked us to go back and review, you know, the project across all areas. So we're in the, you know, the first stages of that and working out what we're gonna look at and what options we're gonna look at. You want to add anything to that, Graham?

Graham Shuttleworth
Graham Shuttleworth
Senior EVP and CFO at Barrick Mining Corporation

Yeah.

Fahad Tariq
Fahad Tariq
VP and Senior Equity Research Analyst at Jefferies

Okay, great. Thank you.

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

Thank you.

Operator

Our next question comes from Lawson Winder at Bank of America. Lawson, your line is open. You may unmute and ask your question. Lawson, your line is open. Please unmute.

Lawson Winder
Lawson Winder
Research Analyst of Metals and Mining at Bank of America

Thank you very much, operator. And hello, Mark, and hello, Graham. Thank you for today's presentation. If I could ask one follow-up on Barrick North America, is the intention for Barrick North America to be domiciled in the United States?

Graham Shuttleworth
Graham Shuttleworth
Senior EVP and CFO at Barrick Mining Corporation

Again, there's a lot of work going on on that project, and as it's determined, we'll keep you updated.

Lawson Winder
Lawson Winder
Research Analyst of Metals and Mining at Bank of America

On capital return, the new dividend policy is very clear, and makes a lot of sense. How might share repurchases factor into capital return going forward?

Graham Shuttleworth
Graham Shuttleworth
Senior EVP and CFO at Barrick Mining Corporation

At the moment, Lawson, the board is very clear that they want to focus on dividends. You know, I will say you know, in my experience, of engaging with shareholders, you know, this is an area where everybody has a strong opinion. And, I know you're never going to please everyone, because, yes, some people favor dividends and some favor buybacks. But for now, the board is very focused on dividends, and hence the reason why they have not renewed the buyback approval.

Lawson Winder
Lawson Winder
Research Analyst of Metals and Mining at Bank of America

Okay. Very clear. On Veladero, how would you describe that asset in terms of the importance to the overall portfolio? And, and would you go so far as to describe it as non-core, and have you explored the saleability of that asset? And then if so, could Pascua-Lama potentially be packaged as some sort of sale with Veladero? Thank you.

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

So, Lawson, we haven't. No, Veladero is not non-core, and in fact it's one of our top performing assets in the last 12 months, so we haven't looked at divesting it, if that's what you're asking.

Lawson Winder
Lawson Winder
Research Analyst of Metals and Mining at Bank of America

Okay, great. Thank you very much, Mark.

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

Thanks.

Lawson Winder
Lawson Winder
Research Analyst of Metals and Mining at Bank of America

Thanks, Graham.

Operator

Our next question comes from Anita Soni at CIBC World Markets. Your line is open. You may unmute and ask your question.

Anita Soni
Anita Soni
Executive Director and Senior Analyst at CIBC World Markets

Everyone, thanks for taking my question. So first question, Mark. Just moving to PV, I just wanted to understand what the guidance is based on in terms of, grades, recoveries, given that your, as you mentioned, the grade, the recovery rates are fairly low. I did see you have, you know, still some of the blending of stockpiles. Is the plan to take out the stockpiles or continue to, you know, forge on with the stockpiles blended in and try to fix the recovery rates with those in, with those stockpiles?

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

Okay. Well, let me start off the answer, then I- again, I'll hand it over to Tim. But it's obviously the 90% was in the feasibility study. We're not going to achieve that. We're targeting 84, but to get to the 84, you know, we're gonna have to do the blending and a few other things, right? So we're currently sitting, I think, Tim, around 75, 76, and so we'll then ramp up over the next years as we get more confidence in how we blend the stockpiles into the fresh material and when we can actually get up to that 84%. And there's also some projects we have to do as well. But Tim, you want to expand on that?

Tim Cribb
Tim Cribb
COO at Barrick Mining Corporation

Yeah. Thanks, Mark. I think the key is to define the projects. We have Hatch working with us at the site on the key projects that we can look to deliver the improvement from 76%-84%. Those stockpiles do make a key portion of the feed over the coming 3-5 years, so it is important that we do optimize that and get the maximum recovery we can from that. The technical report, which is coming out at the end of February, that will obviously have a lot more detail on this. But for the LOM assumption, we have basically updated the full recovery model to incorporate this latest test work, so we've ran that through the life of the mine.

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

Just to reiterate that the updated 43-101, which will obviously have all of this information, will be available at the end of February.

Anita Soni
Anita Soni
Executive Director and Senior Analyst at CIBC World Markets

Right. And I guess the question that I had as a follow-up for that part of it was, do you expect to retain all of the ounces that you reported in the reserves and resources statement at year-end, in that 43-101, or will that potentially take some of the ounces out?

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

No, no, we expect to maintain, Tim, correct?

Tim Cribb
Tim Cribb
COO at Barrick Mining Corporation

Yeah.

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

Yeah.

Anita Soni
Anita Soni
Executive Director and Senior Analyst at CIBC World Markets

Okay. And then my second question was just with respect to the IPO. I, I know you, you know, you're saying you'll have a, a- an update at year-end on that, or, or, sorry, it will be completed by year-end, but could you give us an idea of what portion of the, of Nevada Gold Mines and, and, you know, Fourmile North American assets, what portion of those assets do you intend to IPO? I've heard ranges between 10%-15% and north of 30%, but I'm not sure what, what you guys are talking about.

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

I think it's fair to say it'll be on the lower end of that and be a minority part of those assets.

Anita Soni
Anita Soni
Executive Director and Senior Analyst at CIBC World Markets

So, more along the lines of 10%-15%?

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

Sure. Yes.

Anita Soni
Anita Soni
Executive Director and Senior Analyst at CIBC World Markets

Okay. Thank you. That's it for my questions for now.

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

Thank you.

Operator

Our next question comes from Bennett Moore at J.P. Morgan. Bennett, your line is open. You may unmute and ask your question.

Bennett Moore
Bennett Moore
Equity Research Analyst at JPMorgan

Good morning. Can you hear me all right?

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

Yes, we can hear you, Bennett.

Bennett Moore
Bennett Moore
Equity Research Analyst at JPMorgan

Great. Thank you for taking my questions. I wanted to come to Mali, and since gaining control back there, what has the dialogue been with the government, and what are the state of the assets, and is there any incremental investment required there?

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

Okay, Bennett, let me hand it over so he can give us an update, sir.

Graham Shuttleworth
Graham Shuttleworth
Senior EVP and CFO at Barrick Mining Corporation

Hi, Bennett. The relationship is really at a reset. And the engagement so far has been really positive. We took control of the asset on the sixteenth of December. It was actually in much better shape than we expected. So we started off feeding low-grade stockpiles, and at this point, we've now started up all three of the underground mines. And we are ramping up the open pit, which we expect to be doing that in the second half of this year. So the focus is really on getting that ramp up in a safe manner, and so that we can achieve our historical run rates by the end of this year.

Graham Shuttleworth
Graham Shuttleworth
Senior EVP and CFO at Barrick Mining Corporation

You would have seen in our guidance that for Loulo-Gounkoto, this year, we are guiding between 260,000 and 290,000 ounces attributable.

Bennett Moore
Bennett Moore
Equity Research Analyst at JPMorgan

Thanks for that. And, you know, now with the employees no longer detained and the worst seemingly behind, just wanted to get your latest thoughts on a potential asset sale there, if you, you know, seen any interest or dialogue from other parties?

Graham Shuttleworth
Graham Shuttleworth
Senior EVP and CFO at Barrick Mining Corporation

No, I think at this point, the focus is really on ramping up that mine and restoring the relationship, and, you know, everyone's really committed to do that.

Bennett Moore
Bennett Moore
Equity Research Analyst at JPMorgan

All right. I'll get back in the queue. Thank you.

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

Thanks, Bennett.

Operator

Our next question comes from Carey MacRury at Canaccord Genuity. Kerry, your line is open. You may unmute and ask your question.

Carey MacRury
Carey MacRury
Managing Director and Senior Gold Analyst at Canaccord Genuity

Hi, good morning, guys. Can you hear me?

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

Yeah, we can hear you, Carey.

Carey MacRury
Carey MacRury
Managing Director and Senior Gold Analyst at Canaccord Genuity

Yeah. Just going back to the IPO, just wondering about the timing. I mean, production in Nevada has come down pretty much consistently every year. Looks like it'll be lower again this year. So just wondering why now and not, you know, when Nevada looks a bit more stabilized?

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

Okay, so look, Carey, this is my view. I've spent a lot of time in Nevada over the last 4 months, as you can imagine. So I think Nevada is stabilized, and I think what we've demonstrated in a very short time, far quicker than I thought, that we have given control back to the general manager. We have a very strong team in Nevada like we've had for 20 years, and you've seen the performance in Q4, and January is even stronger. Again, as I said, I think the best January we've had in 5 years. So I'm completely comfortable they're gonna deliver this year, every quarter, which you're gonna see before we go to this IPO, and I think we're now in a position where we won't disappoint, and that production over time will actually grow.

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

And again, Tim, anyone else, feel free to chime in if you've got anything else.

Carey MacRury
Carey MacRury
Managing Director and Senior Gold Analyst at Canaccord Genuity

Okay, and maybe just on the 2027 outlook, if you can just sort of walk through sort of the big, you know, what's moving from 2026 to 2027?

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

Right. Sure.

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

Is that, sorry, Carey, is that for the group or at NGM?

Carey MacRury
Carey MacRury
Managing Director and Senior Gold Analyst at Canaccord Genuity

No, no, group level.

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

Yeah, so the-

Carey MacRury
Carey MacRury
Managing Director and Senior Gold Analyst at Canaccord Genuity

So you're up, yeah.

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

Yeah, so the biggest movers really are continued increase at Loulo-Gounkoto and a small increase at Nevada and then an increase at PV. So those are the three key areas.

Carey MacRury
Carey MacRury
Managing Director and Senior Gold Analyst at Canaccord Genuity

Okay. Okay, that's it for me. Thanks, guys, and congrats, Graham, and all the best.

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

Thank you, Kerry.

Operator

Our next question comes from Josh Wolfson at RBC Capital Markets. Josh, your line is open. You may unmute and ask your question.

Josh Wolfson
Josh Wolfson
Managing Director and the Head of Global Metals and Mining Research at RBC Capital Markets

Yeah, thanks very much. I noticed the new guidance methodology doesn't include costs or CapEx indications for the next couple of years. You know, the historical guidance for the company did indicate that there was a cost reduction over time. How should we think about costs going forward after 2026? Thank you.

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

Amy, you want to address that?

Graham Shuttleworth
Graham Shuttleworth
Senior EVP and CFO at Barrick Mining Corporation

Yeah, I mean, Josh, obviously we didn't give you guidance, so I'm not about to give you guidance now. But I think, you know, broadly, I would say the, yeah, flat would probably be a better way of thinking about it.

Josh Wolfson
Josh Wolfson
Managing Director and the Head of Global Metals and Mining Research at RBC Capital Markets

Thank you. And then, another question on the IPO. I'm wondering, how is the company thinking about, the management of NewCo, and what sort of governance rights will Barrick have with, the state, given it still will be controlling? And then sort of along those lines, you know, how is the company ensuring that both Barrick shareholders will be aligned with the NewCo shareholders? Thank you.

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

Well, look, Josh, I think it's too early to say. I mean, we're starting a nine-month process, and as I said, we'll keep you updated as we move along. But I haven't got the answers to those questions at the moment.

Josh Wolfson
Josh Wolfson
Managing Director and the Head of Global Metals and Mining Research at RBC Capital Markets

Thank you very much.

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

Thanks, Josh.

Operator

Our next question comes from Martin Pradier at Veritas. Martin, your line is open. You may unmute and ask your question.

Martin Pradier
Martin Pradier
Senior Investment Analyst at Veritas

Thank you. My question is, if you can unpack a little bit the big cost increase from this year from the outlook compared to 2025. What are the big drivers, if you can provide some color for gold and for copper, please?

Graham Shuttleworth
Graham Shuttleworth
Senior EVP and CFO at Barrick Mining Corporation

Thanks, Martin. Really, there's sort of three buckets, two of which are the most significant. The first one is the gold price assumption. So-

Martin Pradier
Martin Pradier
Senior Investment Analyst at Veritas

Hi, can you hear me?

Graham Shuttleworth
Graham Shuttleworth
Senior EVP and CFO at Barrick Mining Corporation

Yeah, I can hear you. Can you hear me? Okay, moderator, can you hear me?

Operator

Yes, we can hear you loud and clear. Martin, we can hear you as well.

Graham Shuttleworth
Graham Shuttleworth
Senior EVP and CFO at Barrick Mining Corporation

Martin, can you hear us? Looks like we've lost Martin.

Operator

We can move on to the next question. As a reminder, if you would like to ask a question, you can click on the Raise Hand button at the bottom of your screen. Our next question comes from John Tumazos at John Tumazos Very Independent Research. John, your line is open. You may unmute and ask your question.

John Tumazos
Managing Director, Principal, and Director of Research at John Tumazos Very Independent Research

Thank you very much. Barrick sold 31 million ounces of gold resources for $2.55 billion or $82 an ounce. Will you sell any more gold? Is it because you don't have enough managers for all of your properties, or would you reverse course and buy gold to offset the gold you sold?

Graham Shuttleworth
Graham Shuttleworth
Senior EVP and CFO at Barrick Mining Corporation

Hey, John, I think it's not a question of just selling gold for the sake of selling gold, it's really about focusing on a strategy. Our strategy has always been to focus on our Tier One high-quality assets, and the dispositions that we've made have been in respect of those assets that didn't fit that strategic filter. So, you know, we'll definitely continue to invest in gold going forward, you know, in line with our strategy. We definitely believe in gold and the focus of this company going forward is very much around gold. But it's, you know, within the constraints of the strategy.

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

You still there, John?

John Tumazos
Managing Director, Principal, and Director of Research at John Tumazos Very Independent Research

Thank you.

Operator

As a reminder, if you would like to raise. if you would like to ask a question, please click on the Raise Hand button at the bottom of the screen. This concludes our Q&A session. Back to Cleve for any closing remarks.

Cleve Rueckert
Cleve Rueckert
Head of Investor Relations at Barrick Mining Corporation

Great. Thank you, everyone, for joining us today. We look forward to speaking with you again on our first quarter results call in May. Please get in touch with us if you have any further follow-up questions. Good. Thanks again.

Mark Hill
Mark Hill
President and CEO at Barrick Mining Corporation

Thanks, everyone.

Executives
    • Cleve Rueckert
      Cleve Rueckert
      Head of Investor Relations
    • Graham Shuttleworth
      Graham Shuttleworth
      Senior EVP and CFO
    • Mark Hill
      Mark Hill
      President and CEO
    • Tim Cribb
      Tim Cribb
      COO
Analysts
    • Anita Soni
      Executive Director and Senior Analyst at CIBC World Markets
    • Bennett Moore
      Equity Research Analyst at JPMorgan
    • Carey MacRury
      Managing Director and Senior Gold Analyst at Canaccord Genuity
    • Daniel Major
      Managing Director and Head of European Mining Research at UBS Securities
    • Fahad Tariq
      VP and Senior Equity Research Analyst at Jefferies
    • John Tumazos
      Managing Director, Principal, and Director of Research at John Tumazos Very Independent Research
    • Josh Wolfson
      Managing Director and the Head of Global Metals and Mining Research at RBC Capital Markets
    • Lawson Winder
      Research Analyst of Metals and Mining at Bank of America
    • Martin Pradier
      Senior Investment Analyst at Veritas
Powered by Quartr