Barrick Mining Corporation Q1 FY2026 earnings call

Core 2026 Priorities & Q1 Progress

• Safety: Shifted focus from total recordable injuries to eliminating risks of serious/fatal injuries starting Q4 2025. Q1 saw a meaningful reduction in high-severity injuries, 63% of all injuries were minor, and lost-time injuries declined, though too many near misses remain and work continues toward the zero harm goal. Executive leadership has increased field time and focused on critical control verification.
• Operational Delivery: Achieved 4% year-over-year gold production growth to 719,000 ounces, beating guidance. Costs came in below guidance; adjusted net earnings rose 173% year-over-year, attributable EBITDA doubled, and free cash flow increased 195% year-over-year to $1.2 billion. Ended the quarter with $2.4 billion in net cash.
• Growth Projects: All key organic growth projects advanced on schedule and on budget:
  • Lumwana (Zambia copper expansion): Mill expansion is on track to hit the lower end of 2026 capital guidance and original $2 billion total budget, with first production expected Q1 2028, which will double annual copper output from 117,000 to 240,000 tonnes.
  • Four Mile (Nevada gold): Drilling continued through winter, with expansion planned through 2026 and PFS expected to complete by 2028.
  • Reko Diq: Undergoing a 12-month strategic review; existing contracted work continues during the review.
  • Lulo-Concordia: Restart ramp-up proceeded ahead of schedule, already contributing attributable EBITDA earlier than expected, with zero safety/environmental incidents in Q1. On track to reach steady state 600,000+ ounces annually by end of 2026.
• North American Gold Assets IPO: Dedicated regional leadership team is in place and working effectively, on track to complete the IPO by the end of 2026.

Capital Allocation Framework

• First priority: Maintain a strong balance sheet. Barrick currently has $2.4 billion net cash, an undrawn $3 billion revolving credit facility, and no meaningful debt maturities before 2033.
• Second priority: Deploy capital to earnings-accretive organic growth projects, maintaining discipline to prioritize value over volume growth.
• Third priority: Return cash to shareholders. Maintains a policy of paying 50% of annual attributable free cash flow as dividends (base quarterly dividend of $0.175 per share, with year-end top-ups). The board approved a new $3 billion share buyback authorization, bringing total shareholder returns since 2021 to $7.9 billion.

1. North America Gold (NGM and PB): Combined attributable EBITDA contribution of 57%, with a nearly 70% margin. Gold production increased 10% year-over-year, and all key operations (Carlin, Cortes, Turquoise Beach) achieved record quarterly tonnages, with processing facilities hitting multi-year high production and throughput levels.
2. All other gold regions: Delivered strong gold production and meaningful attributable EBITDA at a 65% margin.
3. Copper: Q1 2026 production hit 49,000 tonnes (in line with plan), representing an 11% year-over-year increase. C1 cash costs came in below plan, and copper is positioned as a key long-term organic growth driver for Barrick.

• Full year 2026 production and cost guidance remains unchanged from prior estimates.
• Q2 2026 gold production is expected to range from 730,000 to 770,000 ounces, which is above Q1 2026 output and consistent with the annual plan.
• Full year production is expected to increase sequentially through the second half of 2026: copper production will be higher in H2 2026 than H1 2026, which is typical for Barrick's operational cycle.
• The Reko Diq 2026 annual capital budget remains within its original range, with the project holding at ~$20 million per month during the 12-month review period.
• The North American Gold IPO remains on track to be completed by the end of 2026, with regulatory filings expected to be completed by late summer 2026 to enable a market launch in fall 2026.

• Safety performance is still not at target levels, with too many near misses reported in Q1 2026, requiring continued work to embed zero harm standards.
• Reko Diq faces contractor disputes, multiple force majeure notices, and regional security concerns in Pakistan, prompting a 12-month strategic review of the project.
• Geopolitical and regulatory risk in high-risk mining jurisdictions is a key concern, driving Barrick's strategy to prioritize growth in more stable mining regions.
• Diesel price volatility creates cost pressure, with sensitivity of $12 per ounce of gold for every $10 per barrel increase in oil prices, though Barrick holds sufficient inventory to avoid supply disruptions.
• Geopolitical instability in Mali has created potential supply chain risks, though Lulo-Concordia currently has 5 months of key supplies and 3 months of diesel inventory, with no current operational impacts.

Q: On the Reko Diq project, what is the quarterly capex run rate during the review, holding cost if the project is paused, and what criteria will management use to decide whether to proceed? / A: The full-year 2026 capex budget for Reko Diq remains intact for ongoing pre-approved work during the 12-month review. If the project enters care and maintenance after current works are wound down, holding cost will be approximately $20 million per month. Management needs to resolve contracting issues and regional security concerns in discussions with the Pakistan government, re-evaluate total projected capital costs, and confirm the project can be delivered successfully before committing to full completion.

Q: Does the 50% of free cash flow dividend policy remain independent of the new $3 billion share buyback, and will Barrick return 100% of free cash once it hits a certain net cash target? / A: The 50% free cash flow dividend policy is unchanged, and the new share buyback does not impact this commitment. Barrick moved away from a fixed net cash balance sheet target last quarter and currently takes a flexible approach, executing the buyback opportunistically based on available cash flow and the perceived value of Barrick stock over the course of 2026.

Q: What is Barrick’s framework for portfolio de-risking and evaluating potential acquisitions, and is there a preference for gold vs copper targets? / A: Barrick is prioritizing future growth in jurisdictions with stable mining regulations and lower operational interference, in response to recent increased political instability in parts of Africa. Non-core assets (like Barrick's 24% minority stake in Coringa) are prioritized for potential divestment, and there is no stated preference between gold and copper for accretive acquisitions.

Q: What is the status of including the Four Mile project in the North American Gold IPO joint venture with Newmont, and could it be added earlier than the 2029 contractual milestone? / A: Barrick has given Newmont full early access to all Four Mile geological and financial data to enable early discussion of bringing the project into the JV ahead of the 2029 feasibility study milestone. If the parties can reach a mutually acceptable agreement, Four Mile will be added to the North American portfolio early; if not, it will follow the existing contractual timeline. The IPO perimeter currently includes Four Mile per documentation requirements.