Prepared remarks
Welcome everyone to Barrick's first quarter 2026 results presentation. At this time, all participants are in listen-only mode. As a reminder, this event is being recorded and a replay will be available on Barrick's website later today. I will now turn the call over to Cleve Rueckert, Head of Investor Relations. Please go ahead.
Thank you and good morning, everyone. We hope you've had an opportunity to review the press release we issued before the markets opened this morning. This presentation deck is also now available to download on our website. Presenting our results today are Mark Hill, Barrick's President and CEO, and Helen Cai, Senior EVP and CFO. Other members of Barrick's management team will be available after our prepared remarks for Q&A. Before we begin, please note that we will be making forward-looking statements. This slide includes a summary of the significant risks and factors that could affect Barrick's future performance and our ability to deliver on these forward-looking statements. This material is also available on our website. I will now hand it over to Mark.
Thanks, Cleve, and thank you all for joining us. We had a strong Q1 with excellent operating and financial results. Before I go into detail, I want to review the priorities for 2026 that we set at the start of the year. These are our priorities for achieving safe, consistent, reliable delivery across our portfolio. The first is obviously safety. Our safety performance has not been where it needs to be, and we're taking action to improve it. The second is operational delivery. We are on track to meet our production and cost guidance. The third is growth. We are advancing our key organic opportunities, including Pueblo Viejo, Lumwana and Fourmile. The fourth is the IPO of North American gold assets, which we believe will unlock significant value for our shareholders. In Q1, we made steady progress in all four of these areas. It was the second quarter in a row of improved delivery across the board. Most importantly, we improved safety. We performed well operationally. We delivered gold production above guidance. Production increased 4% year-over-year. We also came in below guidance on our costs. Strong execution in the quarter allowed us to capture more of the high gold price and deliver strong financial results. Attributable EBITDA doubled year-over-year at a much higher margin. Free cash flow increased 320% year-over-year to $1.6 billion, and we ended the quarter with $2.4 billion of net cash. We advanced our growth projects. Our 100% owned Fourmile project continues to progress. The Lumwana expansion advanced slightly ahead of schedule and we are reviewing Reko Diq as previously disclosed. We moved forward on the planned North American IPO, which we're on track to complete by the end of this year. Our North American assets have their own dedicated leadership team, which has been working together successfully. Okay, I'd like now to spend some time reviewing our work on safety. We believe our safety performance and operational performance are linked. Businesses perform better overall when they manage risk, have leaders in the field, and follow critical controls. Historically, Barrick focused on total recordable injuries. The company led the industry on that one metric, yet it did not adequately address the risks that can lead to serious injuries and fatalities. In Q4 of last year, we shifted our focus to identifying and eliminating the risks behind serious and fatal events. In Q1, we saw this change begin to work. There was a meaningful reduction in significant and high-severity injuries. 63% of all injuries during the quarter were classified as minor. Our reported lost time injuries also declined. Our leaders, all the way up to our executive committee, are spending more time in the field. They are focusing more on leading indicators, particularly critical control verifications. To be clear, though, we are still not where we need to be and had too many near misses during the quarter. We still have work to do, but we are making steady progress to fulfill our commitment to zero harm. It is now embedded in leadership behavior, operating routines, and decision-making at every level. Turning now to our Q1 highlights. Barrick produced 719,000 ounces of gold in the quarter, above guidance and an increase of 4% from a year ago. There were three drivers: a 10% year-on-year increase in production in North America, along with strong performance at both Veladero and Loulo-Gounkoto. On the copper side, we produced 49,000 tons in line with the plan. We managed costs with discipline. At gold, cost per ounce came in better than planned, reflecting solid cost control and efficiencies across both mining and processing. Copper production increased 11% year-over-year. C1 cash costs were lower than our plan. The combination of volume, cost discipline and favorable realized pricing drove a substantial increase in earnings and cash flow, which has meant that today we announced a quarterly dividend of $0.175 per share and a $3 billion share buyback. In Q1, we had strong performance across all our regions. North America continued to anchor our world-class portfolio. Nevada Gold Mines and Pueblo Viejo both registered year-over-year growth. Together, they accounted for 57% of our attributable EBITDA at a margin of nearly 70%. Our other regions also delivered strong gold production with meaningful attributable EBITDA at margins of 65%. Copper is performing well and it is an important part of the growth driver for Barrick. Our portfolio provides near-term cash flow and longer-term organic growth. As I mentioned, Nevada Gold Mines is on track and performing well. It was a core contributor to our operational and financial performance. The productivity improvements we highlighted last quarter continued through Q1. Carlin, Cortez, and Turquoise Ridge underground mines delivered their highest tonnages since the joint venture was formed. We are now on track to achieve record underground tons mined for this year. That is an important leading indicator that speaks to both mine productivity and the reliability of execution underground. Our processing plants performed equally well. The Carlin roasters achieved their highest Q1 production since 2022. The Sage autoclave achieved its highest quarterly throughput since 2021. We achieved these increases in both volume and productivity while continuing to improve safety. As I said, they work together. I also want to highlight that we remain in regular and constructive dialogue with Newmont, our NGM joint venture partner, about NGM performance, the timeline of the Fourmile project and the IPO. Loulo-Gounkoto also had an excellent quarter. The ramp-up progressed ahead of schedule. Both mining and processing outperformed the restart plan, which speaks to the strengths of both the asset and our execution. We are prioritizing the high-grade underground ore that will contribute more in the near term. At the same time, we are preserving future optionality in the open pits. The team reported zero safety and first-line environmental incidents during the quarter. Financially, Loulo-Gounkoto made an earlier than expected contribution to Barrick's quarterly attributable EBITDA, already a meaningful result at this stage of the ramp-up. Turning to our organic growth pipeline. Lumwana is our copper growth project in Zambia. Once complete, the mill expansion will increase throughput from 27,000,000 to 52,000,000 tons per year, increasing copper production by 100% from 117,000 to 240,000 tons annually. The project is on track to come in towards the lower end of the 2026 capital guidance and on track for the original budget of $2 billion. During the quarter, the initial lift of the mill building was completed, mill shells were delivered, and the first shipments of structural steel were on their way to site. We expect to produce our first copper from the expansion by Q1 2028. Our Fourmile project in Nevada continued to demonstrate its potential to become a Tier One gold asset. Drilling activity continued throughout the winter. We plan to expand drilling through 2026 and to complete the PFS studies by 2028. You can see the quality of the intercepted grade outside of the existing resource on the slide. We are on track to complete the proposed IPO of our North American gold assets by the end of 2026. As I said, the region has a dedicated team and has been working together very well for several months. They can focus completely on North America without the competing priorities that came from running a broader multinational portfolio. We believe that focus should translate to further improvements in performance. We will continue to update the market on the IPO as we make further progress. I would now like to introduce Helen Cai, our CFO, who will review our financial performance. Helen, over to you.
Thank you, Mark, and good morning, everyone. At a high level, this was a quarter in which strong production, consistent cost performance, and a supportive gold price environment combined to deliver outstanding financial results. We saw substantial growth in earnings, significant margin expansion, and robust free cash flow generation, while also strengthening an already solid balance sheet. What is important is that these results were not driven by price alone. The higher gold price clearly helped, but it amplified improvements already occurring in the business: better operating performance, cost discipline, portfolio optimization, and stronger capital efficiency. This is what gives these results real quality and durability. Turning to the numbers. Gold production from continuing operations increased 4% year-over-year. Combined with the 66% increase in our realized gold price, that drove the very strong financial performance Mark already touched on. Adjusted net earnings rose 173% year-over-year, and attributable EBITDA increased 103%. Attributable free cash flow, which is the measure we use as the basis for our dividend policy, increased 195% year-over-year to $1.2 billion in the quarter. These very strong results reflect both the operational progress in the business and the leverage our portfolio has to higher commodity prices when we execute well. We closed Q1 with $2.4 billion of net cash on the balance sheet, giving us flexibility to continue investing in our highest return opportunities. Taken together, I would describe the quarter as one of strong earnings quality with strong cash conversion. Capital allocation is a major priority, particularly in an environment where the business is generating significant free cash flow. We have a clear framework for deploying capital to sustain and grow our business and provide returns to shareholders, all while ensuring our balance sheet remains strong and flexible. This framework is designed to be sustainable through the cycle. Our first priority is balance sheet strength. With $2.4 billion of net cash and an undrawn $3 billion revolving credit facility and no meaningful debt due until 2033, we are already in a favorable position. Our second priority is earnings accretive growth, which includes sustaining and growth capital. Lumwana and Fourmile are two clear examples where we are deploying capital into organic opportunities that we believe will generate superior returns. More broadly, we intend to identify similarly earnings accretive opportunities in the future to strengthen our growth profile while remaining disciplined in how and when we deploy capital. This is not only about growth for its own sake, it is about creating value over time. Our third priority is returning cash to shareholders. Our new dividend policy, implemented last quarter, provides for a quarterly base dividend of $0.175 per share, topped up at year-end to target a total payout of 30% of attributable free cash flow. This quarter, following solid execution, strong free cash flow and the value in Barrick stock, the board also approved a $3 billion share buyback authorization that further amplifies our total return to shareholders. Since 2021, Barrick has returned $7.9 billion to shareholders, including $697 million in Q1 2026, and $2.4 billion in 2025. Our capital allocation framework is disciplined, flexible, and designed to work throughout the cycle. It supports reinvestment in the business, advances growth, protects the balance sheet, and creates a clear pathway for returning excess cash to shareholders. With that, I will turn the call back over to Mark.
Thank you, Helen. Our 2026 production and cost guidance remain unchanged. For Q2, we expect gold production to be in the range of 730,000 ounces to 770,000 ounces, which is above Q1 and consistent with our plan. We also expect higher production in Q3 and Q4, which is typical for our business. For copper, we expect higher production in the second half of the year than the first half. We will continue to focus on controlling costs, capital intensity, and productivity. Based on what we see today, we remain confident in our ability to deliver our full year commitments. To conclude, I want to reinforce our core priorities, all of which we have made steady progress on in Q1. We improved safety, although we do realize we still have a lot of work to do. We improved operational consistency and cost discipline and delivered on guidance for Q1. We advanced Pueblo Viejo, Lumwana, and Fourmile on schedule and on budget. We advanced our North American IPO on schedule. We are on track to execute successfully against all these four priorities by year-end. Barrick historically has been criticized for not delivering on its commitments. I just want to highlight that this is the second quarter that we have delivered on all of our commitments to our shareholders. Our portfolio is performing with increased resilience. Our strategic projects are advancing, our balance sheet is strong, and we're on track to achieve our 2026 guidance. I'll now hand back to the moderator for Q&A.
Questions and answers
Thank you. For the Q&A session, we'll use the raise hand feature in Zoom. If you'd like to ask a question, click on the raise hand button at the bottom of your screen. Once prompted, please unmute yourself and go ahead. We'll now pause for a moment to assemble the queue. Our first question comes from Tanya Jakusconek at Scotiabank. Your line is open. Please unmute and ask your question. Tanya, your line is open. Please unmute and ask your question. We will move on to the next question. Tanya, please re-raise your hand if you would like to. Our next question comes from Daniel Major at UBS. Your line is open. Please unmute and ask your question.
Hi, can you hear me okay? Hello. Can you hear me? Great. Hi, Mark. Hi, Helen. A few questions. The first one, just on Reko Diq. You've pulled the guidance for the full year down to the lower end of the range in terms of CapEx. How should we be thinking about the kind of run rate of quarterly CapEx going through the balance of the year? Is the first part of the question. The second is, what is the estimated holding cost of the project on an annualized or a quarterly basis at care and maintenance? I guess the third part is, what would you need to see to conclude that this is a project that you feel comfortable committing the remaining CapEx to build the project?
Okay. Thanks, Daniel. On Reko Diq, the budget stays intact. We will be finishing some of those works that we've already started. Those contracts will continue on whilst we do this 12-month review. The year's budget will still come in in that range. The run rate when we are doing this review is about $20 million a month, and that's probably a bit of a rough number at this stage, but we're still refining that. You can assume it's around that number. A good question, what do we need to see? What we did is when we went into this review, there were some things that we had to address right now. We're having issues with the contractors on site, and we've had several force majeure notices. The first thing is we have to understand the contracting strategy and how we're going to make this successful, because obviously we can't continue on that path. That was due to some security concerns and what's going on in the region as well. We're working on how we'll rectify that with the Pakistan government. Our chairman was just there yesterday and is making progress on those discussions. Another thing is I want to rerun the capital and see where we are with that and if there's been any large shifts in the capital. Once we get the answer to all that, I can make an informed decision. I know I've been criticized for being overly cautious, but I think on a project like this, it's important for all the shareholders, including the ones in Pakistan, that we actually understand where we are so that we can be successful going forward. Does that answer everything you wanted to know?
Okay. Yeah, I think so. So just to clarify that, if there's a situation beyond this year that you cannot commit to continuing, it would be about $20 million a month just to hold it on care and maintenance. Is that correct?
Yes. That's approximately what the number would be. Yes. After we get through these contracts, I think we're winding up.
Yeah. Okay. My second question, maybe one to Helen, just on the balance sheet and the distribution policy. Nice to see you've added the buyback in, but a couple of elements to it. I'm assuming your 50% commitment to the dividend is independent of if you do buybacks or not, or is that 50% a cash return commitment? That's the first part. The second part, you've got $2 billion of cash on the balance sheet. What is the level at which you would be willing to commit 100% of free cash flow in capital returns? What is the disadvantage of setting the net cash target?
Thank you, Dan. On your first question, the 50% attributable free cash flow policy was introduced in Q4 last year, and we maintain that policy. That means at year-end, we will use attributable operating cash flow minus attributable capital expenditures to derive attributable free cash flow, and then 50% of that will be used for a top-up dividend in the fourth quarter. That will not affect or be impacted by any of the buyback program that we just announced today. On your second question about setting a target on the balance sheet, we had a balance sheet-based target before, and we moved to the free cash flow-based policy last quarter. Right now we are taking a flexible stance, given the strong cash flow and strong balance sheet. We announced the $3 billion, and we will see the market window. Whenever appropriate, we will execute on our buyback program.
Okay. Maybe just to clarify, in terms of the $3 billion, should we look at that as something that, all else equal, you would expect to be buying back stock through the year if market conditions are similar to today?
I think that decision is based on our strong balance sheet and cash flow generation as well as the value we see in Barrick's shares. We are launching this program to carry it on throughout the year, subject to regulatory windows and market conditions.
For our next question, we will return to Tanya Jakusconek from Scotiabank. Your line is open. Please unmute and ask your question. Tanya Jakusconek, your line is open. Please unmute and ask your question. All right. For now, we will move forward.
Sorry, can I just say, Tanya, if you want to send your questions by email I don't know why we can't hear you, but if you want to send us your questions on email I will answer them at the end.
Thank you. Our next question comes from Josh Wolfson at RBC. Your line is open. Please unmute and ask your question.
Thank you. Just going into some of the operating details. First off, at Nevada Gold Mines, you talked about a bunch of the factors that caused that performance in the first quarter. I'm wondering what's the ability for the company to extend some of these positive results into the second quarter and maybe the second half of the year, and maybe embedded within the second quarter guidance, is there any additional information on how Nevada Gold Mines fits in there? Thank you.
Okay. Thanks, Josh. On the NGM performance, if you remember in Q4 when the team said they were going to try not to pull down all the inventory out of all the circuits at the end of the year, we didn't do that, which actually gave us a boost in Q1 that we didn't expect or plan for. The increases in performance, some were already built in. The team have done a good job of realizing those; it doesn't change the outlook for the year. Tim, if you want to add any other comments on that.
I think you've covered it, Mark. It's really that focus on operating discipline and conformance to plan. If you can deliver on that, you tend to deliver efficiency improvements as well. The plan stands for the rest of the year.
Josh, this process where we've given autonomy back to that region, we've had a focus on it and separate management teams. The results have come quicker than I expected. Let us get through Q2 and see where we track after that.
Looking forward to that. On Loulo, you talked about the underground ramp up going faster than expected. In light of some of the uncertainties in Mali and some of the news on contractor changes, should we expect to see improvements in the asset into the second quarter? More broadly, what should our expectations be under this new operating plan for sustained year production from this asset?
The ramp-up progressed quicker than expected, and it will reach its full potential by the end of the year as planned, so that remains unchanged. Once we get to steady state, you can expect it to reach prior steady-state levels. I'll hand over to Seb for more detail.
We were aware that the contractor DTP was planning to exit, and it ties into our strategy to replace them with a local contractor. We expect to replace that contract by the end of the year and resume that part of the open pit mine plan. Our undergrounds have ramped up nicely and other open pits are performing; there's no impact to the plan. Loulo remains a strong contributor to our production profile as we ramp up. We will continue to assess the full range of strategic alternatives for the asset.
As a reminder, if you would like to ask a question, please click on the Raise Hand button at the bottom of your screen. Our next question comes from Bennett Moore with JPMorgan. Your line is open. Please unmute and ask your question.
Hi. Good morning. Can you hear me all right? Great. Thanks for taking my questions. Helen, congrats on the new role. I wanted to start with the broader shift in strategy outlined in the recent shareholder letter as it relates to reducing high-risk exposure in certain jurisdictions and targeted acquisitions. Could you speak a bit to your framework on both? How do you go about determining which assets might be best suited for divestment and vice versa for acquisitions? For the latter, is there any preference between gold and copper? Also, I appreciate the sensitivity on diesel. Could you remind us which operations are most exposed, and what inventory buffers look like, so we can better gauge potential impacts moving forward?
On de-risking, we're focusing growth in more stable jurisdictions where we have more certainty around the mining regime and the ability to operate without significant interference. Regarding non-core assets, examples would include minority stakes like Porgera, where we spend considerable management time. Those types of assets would be considered non-core at this stage. On diesel sensitivity, the sensitivity is approximately $12 per ounce for every $10 move in the oil price. As far as supply, we are well covered everywhere and are not at risk of running out of diesel. The impact is on cost per ounce rather than supply availability.
Okay, much appreciated. Best of luck.
Our next question comes from Anita Soni at CIBC World Markets. Your line is open. Please unmute and ask your question.
Hi, can you hear me? A couple of questions. Firstly, have you experienced any issues with concentrate shipments coming out of Zambia at this point, such as port restrictions or export problems? Moving to Pueblo Viejo, the tonnage there in Q1 was fairly low. Could you talk about throughput and the tonnage rate at Pueblo Viejo? Also, could you give the key drivers of where you're seeing production improve quarter-over-quarter from Q1 to Q2 so we have an idea of the movers and what's driving that?
Noted. Seb, can you speak to Zambia concentrate shipments?
No issues. All of our concentrate is smelted locally, so it hasn't been a problem. I'm not aware of any export issues. We have secure supply chains and are operating as normal.
On Pueblo Viejo, there was a 15-day shutdown and tonnage was low for the quarter. Can you comment on throughput and whether throughput is expected to be higher next quarter?
Let me hand that to Tim.
At Pueblo Viejo, we updated the metallurgical model and shared that in the updated technical report. We are working with Hatch on further improvements. In addition to the outage and some power interruptions, there is a program with Hatch and our team to optimize recovery going forward. The recovery has improved from where it sat a year ago. Throughput continues to increase over the year. You're correct that lower tonnage in Q1 increased retention time, which helped recovery; we continue to push throughput this quarter and into Q3 while working to de-bottleneck where necessary.
Could you give the key drivers of the production improvement from Q1 to Q2, such as which assets and what is driving the step-up?
You will see improvements across the board as we move through the year. A lot of that is due to timing of maintenance and shutdowns, which we often carry out in the first half of the year. Seb, for Loulo and Gounkoto, comments?
Most sites will show increased production as maintenance is completed. Loulo-Gounkoto is the key driver for us. Kibali will also start improving and we have been carrying out some maintenance work in Q1.
For Nevada Gold Mines, continuing the Goldrush underground expansion and the work at Cortez are key drivers. Delivering that program will increase production.
Porgera experienced a challenging first quarter due to some one-off events and planned maintenance. We should see an uptick for Q2. Veladero should be broadly in line.
For Veladero, we drew some ounces forward into Q1 by drawing down inventory, so there will be an impact in Q2 as that inventory rebuilds.
Final question: regarding the IPO update and discussions about bringing Fourmile in earlier, can you give color on how Fourmile fits in and the nature of discussions with Newmont?
The relationship with Newmont has evolved. We offered Newmont early access to Fourmile because eventually it will be part of the joint venture and they will be a partner. The trigger is not immediate; it is tied to feasibility. They have full access to the data and are reviewing it. If we can reach an agreement to bring Fourmile in earlier, that could be beneficial to both parties, and we will discuss it. If we can reach an agreement, we will consider bringing it in early; if not, we will proceed according to the current timeline.
Tanya Jakusconek, you are allowed to speak now. Please go ahead and unmute yourself.
Can you hear me now? First, Mark, congratulations on improving safety at Nevada Gold Mines. Regarding turnover at NGM, have you seen any improvement in staff turnover? Also, with respect to bringing Newmont in earlier for Mali once it's included in the IPO, is there any way this could be phased in over time? They typically like feasibility-level information, but could there be a phased approach? On Mali specifically, can you give an update on any impacts to operations or supplies due to country issues versus mine-plan-related items? Finally, on the IPO timeline for the North American assets, can you review the documentation timeline required to meet the year-end deadline and what would cause a slip into 2027? For example, audited financials and technical reports — when will those be available?
Turnover hasn't changed materially yet. I was at NGM with Natasha last week and morale and focus on where NGM is going is evident; I would hope turnover starts to improve but it has not yet. On bringing Newmont in earlier, I can't speak on their behalf. They have access to the information, including financial models. If we can reach an agreement to bring Fourmile in earlier, it would likely be beneficial, but I can't provide more detail on Newmont's internal thinking. On Mali, I'll hand over to Seb to describe on-the-ground impacts.
We have not had any impact on our operations in Mali. Our supply chain into the site is routed through Senegal and has not been affected by roadblocks into Bamako. We have at least five months of key inventory holdings, most contractors are local, and diesel supply is secure with about three months of stock. We are operating as normal with no impact at this time.
On the IPO of the North American assets, can you review the timeline of filings and documents required so the market understands when those will be public and whether the year-end goal is realistic? Specifically, will technical reports and financials for Cortez, Fourmile and Pueblo Viejo be included and when will they be available?
I'll hand that to George for more detail on the timeline and filings.
Hi Tanya. We need to file with the relevant regulators. We're working through the processes, and the plan is to be public late in the summer, which would allow us to access the market in the fall and meet our year-end objective. The perimeter includes NGM, Pueblo Viejo and Fourmile, and the financials and technical reports for those will be reflected in the filing documents. We've been preparing these documents since board approval and will continue to progress them; late summer is our current target for making the necessary information available.
Am I correct that the financials and technical reports will include Cortez, Fourmile and Pueblo Viejo? I look forward to receiving those documents. Thank you for taking my questions.
Thanks, Tanya. We'll provide those documents and continue to update the market as we progress.
Our next question comes from Martin Pradier at Veritas. Your line is open. Please unmute and ask your question.
Can you explain how the equity pickup in Kibali was $204 million in Q1? This is similar to the equity pickup in the whole of 2025. What happened? It's much higher than the same quarter last year. Is there anything extraordinary?
I'm not sure I fully understand the detail you're pointing to. Seb, can you comment?
Could you repeat the specific line you are referencing? If you can send an email with the exact item, we can follow up. At a high level there is nothing extraordinary to call out here without reviewing the exact item.
The equity pickup in Q1 2026 for Kibali was $204 million, similar to the equity pickup in the full year 2025. What caused that reversal or change?
That primarily reflects the reversal of the super profit tax. If you need more detail on the magnitude, please send us an email and we'll follow up with the specific breakdown.
Okay, fair enough. Thank you.
Our next question comes from Steven Green with TD Securities. Your line is open. Please unmute and ask your question.
Good morning. Regarding the NCIB, are there any restrictions on buying back shares once the IPO process is underway?
Yes. There will be regulatory windows and blackout periods applicable. Our buyback will be executed only when it is regulatory possible.
Our next question comes from Brian MacArthur at Raymond James. Your line is open. Please unmute and ask your question.
Hi, Mark. Following up on non-core assets, you mentioned Porgera earlier. Is there any consideration of divesting your stake in Porgera or other copper assets over time?
At the moment there is no process or anything going on to divest our stake in Porgera. We have no active divestment program for that asset.
That concludes our Q&A session for today. Back to Cleve for any closing remarks.
Great. Thank you everyone for joining us today. We look forward to speaking with you again on our second quarter results call in August. As always, please get in touch with us if you have any further follow-up questions. Thanks.
Thank you. Cheers.
Thank you for your participation. This concludes today's teleconference. You may disconnect your lines at this time.