Barrick Mining Corporation Q2 FY2026 earnings call

New Joint Venture Agreement with Newmont

• Announced a $4 billion total agreement that resolves historical joint venture disputes, combines Barrick and Newmont's Nevada assets (including 6.4 million ounces from Newmont's Mark and Fiberline properties), and reduces friction costs for the planned NGM IPO, aligning partner interests to unlock additional shareholder value.
• The vast majority of net transaction proceeds are planned to be returned to shareholders.

Operational and Safety Performance

• This is the third consecutive quarter of strong results, with the company meeting all four 2026 annual priorities set at the start of the year.
• Safety remains the top priority: total recordable frequency rate improved quarter-over-quarter from 0.92 to 0.77, but six lost-time incidents (LTIs) still occurred, which management called unacceptable. Over $90 million has been invested in safety technology in 2026, and senior leadership has increased on-site field time to verify controls and address hazards.
• Key production drivers: Luluk and Kotter ramped up ahead of schedule, PV ramped faster than expected after Q1 maintenance, and Cortez achieved record underground tonnage mined.

Growth Project Progress

• 4 Mile: Drilling ramped up to 20 active rigs, PFS completion remains on track for end of 2028.
• Lemwina copper mill expansion (which will double copper output): 2026 capex is expected to come in at the lower end of guidance, the project remains on budget, and first production from the expansion is targeted for end of Q1 2028.
• PV Expansion: Permitting and construction of the tailings facility, haul roads and water treatment plant are on schedule, with 90% of resettlement packages already accepted.
• RecoDig: Plant construction will not start in 2026, reducing 2026 attributable capex guidance for the project from $600-$700 million to $450-$500 million.

North American IPO Update

• The IPO will create the only major US-listed pure-play gold company with high-quality, long-life assets in low-risk jurisdictions. CEO Mark Hill will lead the new public company upon launch.
• All operating and separation agreements have been completed, and the IPO remains on track to close by the end of 2026, with 10% of the entity offered to the public (no change from original plans).

Capital Allocation

• The disciplined, cycle-resistant capital allocation framework prioritizes: 1) maintaining a strong balance sheet, 2) investing in earnings-accretive growth, 3) returning capital to shareholders.
• The company ended Q2 with $1.2 billion in net cash, an undrawn $3 billion revolving credit facility, and no material debt maturities until 2033, providing full financial flexibility.
• The base quarterly dividend is 17.5 cents per share, with a performance top-up at year-end targeting a 50% total payout of attributable free cash flow. $1.2 billion in share repurchases were completed in Q2 under the $3 billion authorization announced last quarter; since new leadership took office in October 2025, Barrick has returned $3 billion to shareholders via dividends and buybacks, more than double the prior corresponding period.

Overall Q2 2026 results: Net earnings of $1.2 billion, up 50% year-over-year; adjusted net earnings of $1.36 billion ($0.82 adjusted EPS, in line with consensus); attributable adjusted EBITDA of $2.5 billion, up 51% year-over-year with a 59% margin. Attributable free cash flow declined 33% year-over-year due to seasonal tax/interest timing and a one-time $200 million payment, but adjusted for one-time items it was over 60% higher year-over-year; year-to-date attributable free cash flow was $1.4 billion, more than double the prior year period. Gold production was 796,000 ounces, 3% above guidance and 11% higher than Q1 2026; copper production was 56,000 tonnes. The North America segment (NGM and PB) registered year-over-year revenue growth, together contributing 53% of total attributable adjusted EBITDA at a 61% margin. All other global segments delivered strong gold production and attributable EBITDA at a 59% margin.

• Full year 2026 gold production, copper production and cost guidance are maintained unchanged from prior announcements.
• Total 2026 attributable capex guidance was revised downward to $3.8 to $4.2 billion, driven by the delay to RecoDig plant construction.
• Gold production is expected to increase sequentially in Q3 2026 relative to Q2, and rise further in Q4 2026.
• Copper production is expected to be higher in the second half of 2026 compared to the first half.

• Despite improvement in safety performance, the still-occurring six LTIs in the quarter highlight ongoing material safety risk that requires continued significant focus and investment to reach the target of zero harm.
• Recent unplanned weather-related operational disruptions: Balladero was shut down for two weeks due to severe weather in Chile/Argentina, and Polgar was shut down after a drought dried up the local water source.
• Uncertainty around permitting timelines for expanded processing capacity at NGM's Nevada assets, as the full project optimization plan is still being finalized after the Newmont agreement.
• Regulatory risk related to retrospective application of new mining codes, resulting in unexpected $200 million one-time royalty, penalty and interest payments for the Lulongkoto project in Q2 2026.
• Public market uncertainty around the valuation of the 4 Mile project due to limited public technical disclosure, leading to share price volatility.

Q: Can you break down the components of the $4 billion Newmont agreement value, and will the IPO stake size be increased from the planned 10%? / A: Management declined to provide a granular breakdown of the transaction components, noting the agreement resolves all historical disputes and enables optimization of the combined NGM asset base to add processing capacity, reduce unnecessary ore trucking, and accelerate 4 Mile development through synergies from combined operations and management. The IPO size will remain 10% minority stake, no change from original plans.

Q: With the Newmont agreement finalized, can you accelerate 4 Mile development to bring it into production earlier than the current early 2030s target? / A: Management plans to accelerate development as much as possible now that joint venture alignment is achieved. While permitting timelines may prevent an earlier production start date, parallel development of processing infrastructure will enable a much faster ramp-up to a higher final production target once the project is online. No plans for a 100% IPO of NGM after the initial 10% offering at this time.

Q: What is the capital estimate for a new downstream processing facility (roaster) at NGM, and will management release the 2025 4 Mile PEA to give investors more clarity on project economics? / A: A new roaster is estimated to cost approximately $2.5 billion, which would offset existing costs from long-distance ore trucking, with 4 Mile development capex estimated at $1.5 to $1.7 billion over the next several years. Management acknowledged investor requests for more 4 Mile technical information, committed to review the request and provide additional disclosure where possible, but declined to provide a granular breakdown of the Fiberline/Mike asset value component of the Newmont transaction.

Q: What is the current plan for portfolio management of non-North American assets, and is the IPO process delaying this work? / A: Management noted that the non-North American portfolio has significant untapped brownfield growth potential around existing operations, with lower cost growth than new greenfield projects, supported by existing advantageous partnerships including Chinese joint venture co-investment. The IPO process is not distracting from this work, and growing the non-North American portfolio is a key near-term strategic priority. No plans for an IPO of a 10% stake in the non-North American business like the NGM IPO at this time.

Q: How does the revised NGM joint venture agreement change Newmont's input on operations, and what is the status of the Barrick parent CEO search after Mark Hill moves to lead the new public NGM company? / A: The main change is that Newmont now has consent rights for the NGM general manager appointment, and a Newmont employee will be added to the NGM executive team to improve alignment and information flow. The search for a new Barrick parent CEO is advanced, with both internal and external candidates under consideration, and management expects to update the market shortly. No preference for internal vs external candidates has been finalized, though management leans toward an internal appointment.