Barrick Mining (TSX: ABX; NYSE: B) said it plans to file for an initial public offering of its North American gold business this month as it reported better-than-expected third-quarter results. The stock rose.
Completion of the IPO could take place in the fourth quarter or early 2027, Barrick said Monday. Called North American Barrick, the proposed company would hold interests in Nevada Gold Mines’ Carlin, Cortez and Turquoise Ridge operations, along with Pueblo Viejo in the Dominican Republic.
“All eyes are on the IPO,” Jefferies mining analyst Fahad Tariq said Monday in a note. He called the offering “the next major catalyst” for Barrick shares.
The offering follows an August agreement with Newmont (NYSE, ASX: NEM) to contribute Barrick’s Fourmile project and Newmont’s Mike and Fiberline properties to their Nevada Gold Mines joint venture. Newmont will pay Barrick about $2 billion (C$2.8 billion), with the contributions expected this quarter. The agreement secured Newmont’s consent to the IPO while preserving the joint venture’s ownership split of 61.5% for Barrick and 38.5% for Newmont.
Mark Hill, Barrick’s CEO, will also lead the new company. Completion remains subject to market conditions, approvals and securities registration.
Barrick shares rose 3.6% to C$59.28 Monday morning in Toronto, valuing the company at about C$97 billion ($69 billion). The stock has traded between C$45.28 and C$74 in the past year.
Rising output
Barrick outlined the timetable in its third-quarter management discussion and analysis, alongside results showing higher costs but unchanged annual production guidance. Gold output reached 816,000 oz., up 3% from the previous quarter and down 2% year-over-year on a reported basis.
Net income rose 1% from a year earlier to $1.3 billion, while revenue jumped 22% to $5.1 billion, Barrick said. Adjusted earnings of 82¢ a share topped the 79¢ consensus cited by TD Securities in its note.
“All else equal, we are encouraged by strong third-quarter operational performance which highlighted strong cost control despite diesel/consumable cost pressures, reiterated guidance and advancement of its North American IPO towards completion in Q4/26 or early 2027,” National Bank Financial mining analyst Shane Nagle said in a note.
“The balance sheet remains in a strong position with shareholder returns supported further by proceeds from the partial Fourmile sale and North American IPO.”
Higher costs
Gold all-in sustaining costs climbed 24% from a year earlier to $1,911 per oz., reflecting lower grades, increased diesel prices, gold-price-linked royalties and higher sustaining capital. The measure also increased from $1,866 per oz. in the second quarter, despite cash costs declining sequentially.
Barrick reaffirmed its 2026 gold production forecast of 2.9 million to 3.25 million oz. and gold all-in sustaining cost guidance of $1,760–$1,950 per oz. Fourth-quarter gold production should be slightly higher than the third quarter, it said.
Copper costs face a potential overrun. Barrick maintained production guidance of 190,000–220,000 tonnes, but warned in its management discussion that copper cost measures could finish at or slightly above the upper range of guidance because of diesel costs and local currency appreciation. The published copper all-in sustaining cost range remains $3.45–$3.75 per pound.
“Weaker production performance was at Lumwana, with costs higher at all copper assets versus our modelling,” Scotiabank mining analyst Tanya Jakusconek wrote in a note. Copper output of 50,000 tonnes missed her forecast by about 10%, while copper all-in sustaining costs of $4.52 per lb. were 26% above her estimate.
Mali recovery
Higher metal prices helped offset operating pressures. Barrick generated attributable free cash flow of $640 million and returned $1.04 billion to shareholders through dividends and buybacks. It finished September with about $909 million in net cash.
Operationally, the recovery at Loulo-Gounkoto in Mali continued ahead of schedule, with production rising 16% from the previous quarter. Goldrush’s ramp-up and record roaster throughput at Carlin also supported output. However, weather and power disruptions have left Veladero, Porgera and North Mara around or below their annual production ranges.
At Lumwana in Zambia, an ongoing expansion remains on budget and scheduled for first copper at the end of the first quarter of 2028. Barrick expects the project to roughly double annual production. All major long-lead equipment has been procured, and construction of the tailings storage expansion is expected to start this quarter.
Reko Diq in Pakistan remains under review because of security, financing, scope and timeline considerations. Barrick’s previously reduced annual capital budget of $3.8 billion–$4.2 billion reflects lower spending there. The company continues to review the project’s scope, financing, capital requirements and timetable, leaving its eventual cost and development schedule unresolved.
Source: www.northernminer.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
