Barrick Mining Corporation Q4 FY2025 earnings call

Operational Achievements

• Barrick finished 2025 in good condition, delivering on the operating plan and achieving multiple financial records. Resolved the dispute in Mali, repurchased $1.5 billion of shares, and increased the dividend. Q4 posted strong financial results with EBITDA up 82% from the previous year and cash flow up 96% from the previous year.

Segment-Specific Highlights

• North America: Gold production increased 11% from the previous quarter at Carlin. Phoenix met its guidance range for the year, while Cortez and Turquoise Ridge achieved the top end of their ranges. Restructured the business unit, putting PV in the North America region. Adjusted remuneration and bonus structures. Added a chief technical officer and evaluation team.
• PV: Plant throughput was up 12% and gold production up 8% from 2024, but recoveries were not as expected due to metallurgical inconsistency in the weathered stockpile. Work on the new TSF and housing project progressed.
• Fourmile: 2025 was a derisking year, successfully doubling the resource at a higher grade. Next step is working on the Bullen Hill declines for underground access.
• South America and Asia Pacific: Veladero exceeded its 2025 guidance and cost guidance. Porgera achieved the top end of its guidance range.
• Africa, Middle East: Achieved production guidance for the seventh consecutive year. Resolved the Mali dispute, with progress at Kibali and North Mara.

Operational Restructures

• Restructured business units, putting PV in the North America region to share best practices. Adjusted remuneration and bonus structures focusing on safety, production, costs, and growth. Added a chief technical officer and evaluation team for stronger operational leadership.

Gold production for the full year was 3,260,000 ounces, in line with guidance. Q4 gold production increased, with a 25% increase at Carlin and quarter-on-quarter increases across the NDM site. Copper production increased 13% from Q3 due to higher throughput at Balwana. Quarter four was a record quarter financially with revenues up 45% from Q3, net earnings nearly doubling, record cash flow, free cash flow, earnings per share, and cash balance. Full-year cash flow from operations was $7.7 billion and free cash flow was $3.9 billion, up 194% from the previous year.

2026 Guidance

• Gold production is expected to be in the range of 2.9 to 3,250,000 ounces. Copper production is guided to be 192,000 to 220,000 tonnes.
• Attributable proven and probable gold reserves totaled 85 million ounces, with measured and indicated gold resources at 150 million ounces. Copper reserves were stable at 18 million tonnes, with resources at 24 million tonnes.

Future Outlook

• Target to complete the IPO of Barrick's North American gold assets by late 2026. Enter 2026 with momentum, flexibility, and a clear plan forward.

• Safety: Q4 safety was not up to standard, with the company's top priority being to ensure all employees go home safe and healthy.
• Security: Concerns about the security situation in Balochistan affecting the financing for Recordedick.
• Metallurgical Issues: PV's weathered stockpile caused metallurgical inconsistency, affecting recoveries which were not meeting initial expectations.

Q: Daniel Major asked about the IPO potential, proceeds, JV with Newmont, and Recordedick financing.

A: Graham Shuttleworth discussed the IPO being in the process with details to be determined, mentioned respecting JV contracts, and security concerns in Balochistan affecting Recordedick financing.

Q: Fahad Tariq inquired about the Nevada mine plan review and Carlin.

A: Mark Hill and Jim discussed resetting mine plans based on actual performance, leading to more confidence in delivery with improved productivity and maintenance plans.

Q: Lawson Winder asked about Barrick North America domicile, capital return, and Veladero.

A: Graham Shuttleworth stated domicile details were ongoing, board focused on dividends over buybacks, and Veladero is not non-core and not being explored for divestment.

Q: Anita Soni questioned PV's guidance, grades, recoveries, and IPO portion.

A: Mark Hill and Tim discussed PV's recovery targets, blending stockpiles, and the IPO targeting a portion of North American assets.

Q: Bennett Moore asked about Mali's dialogue, asset state, and incremental investment.

A: Seth provided an update on positive dialogue with Mali, ramping up assets, and guiding Rudo Goncotto production between 260-290 ounces attributable.

Q: Carey McGrory asked about IPO timing and 2027 outlook.

A: Mark Hill stated Nevada is stabilized, and Graham Shuttleworth mentioned key areas for growth in 2027 including Blue Lagoon Cotto, Naval, and PV.

Q: Josh Wolf asked about costs after 2026 and IPO governance.

A: Graham Shuttleworth indicated costs likely flat, and Mark Hill stated IPO details were in process with governance to be determined.

Q: John Tumazos asked about gold sales and future gold strategy.

A: Graham Shuttleworth stated focus on tier one high-quality assets, with strategy guiding future gold investment within constraints.