Barrick Gold soars 9.9% on record quarterly performance
Gold mining giant beats revenue expectations as gold prices surge 57%, driving record cash flow
Barrick Gold Corporation shares surged 9.9% to $55.32 following the release of fourth-quarter and full-year 2025 results that demonstrated the gold mining giant's ability to capitalize on record gold prices. The company reported revenue of $6.00 billion for the quarter and $16.96 billion for the full year, up 31% from 2024, according to the company's official earnings announcement.
The strong performance was driven by a substantial increase in gold prices, with the average realized price climbing 57% year-over-year to $4,177 per ounce. Despite gold production decreasing 19.4% to 871,000 ounces in the quarter, higher prices more than compensated, generating adjusted net earnings per share of $1.04—a 79% increase over the third quarter and beating analyst estimates.
Cash flow generation reached record levels, with operating cash flow of $2.73 billion in the fourth quarter and $7.69 billion for the full year, representing a 71% increase over 2024. Free cash flow totaled $3.87 billion for the year, nearly tripling from the previous year's performance. This robust cash flow enabled the company to return a record $2.39 billion to shareholders through dividends and share repurchases in 2025.
Barrick announced a significant dividend policy overhaul, targeting a total payout of 50% of attributable free cash flow. The board declared a quarterly dividend of $0.42 per share for the fourth quarter, a 140% increase over the third quarter, and raised the quarterly base dividend by 40% to $0.175 per share going forward. Share buybacks totaled $1.50 billion for the year, representing approximately 3% of outstanding shares.
"We delivered record free cash flow in 2025, enabling us to return a record amount to our shareholders while maintaining a strong balance sheet," the company stated in its earnings release. The new dividend structure combines a base dividend with a performance-based year-end top-up, aligning shareholder returns more directly with the company's operational success.
Production for the full year came in at 3.26 million ounces of gold, in line with guidance, while copper production reached 220,000 tonnes. Looking ahead, Barrick provided 2026 guidance of 2.90–3.25 million ounces of gold and 190,000–220,000 tonnes of copper. The company's board also approved proceeding with an initial public offering of its North American gold assets, targeted for completion by late 2026.
Analysts had maintained a positive outlook ahead of the results, with several firms including Scotiabank, Jefferies, JPMorgan, and TD Securities carrying "Buy" or "Outperform" ratings. The consensus analyst price target stands at $51.33, suggesting room for further upside from current levels.
The stock's 9.9% surge reflects investor enthusiasm for Barrick's ability to translate higher gold prices into shareholder returns. However, the company acknowledged challenges ahead, including four fatalities at Port Hughes and ongoing safety concerns that will require continued attention. The modest decline in 2026 production guidance compared to 2025 levels also presents an operational challenge as the company seeks to maintain its position as one of the world's largest gold producers.