Barrick Mining’s $3 Billion Buyback and Fourmile Build-Out Target the Widening Gap Between Earnings and Share Price
Published on 06/23/2026 at 16:27 | Redaktion boerse-global.de
Barrick Mining delivered blockbuster first-quarter results in 2026, but the market has so far refused to celebrate. Revenues surged 67% to $5.22 billion, net profit more than tripled to $1.60 billion, and operating cash flow jumped 111% to $2.55 billion. Yet the stock has lost roughly 8.5% since the start of the year, trading at a price-to-earnings multiple of about 10.9 — well below most peers.
The valuation disconnect has pushed management into action. In May, the board authorised a new $3 billion share buyback programme, following the completion of a $500 million repurchase plan late last year. That sits alongside a quarterly dividend of $0.175 per share, with Barrick committed to returning 50% of free cash flow to shareholders.
But shareholder returns are only half the story. On the operational front, the company has taken a major step to expand its long-term production pipeline. Australian underground specialist Barminco, a subsidiary of Perenti, won a $192 million contract to develop Barrick’s Fourmile project in Nevada. The 45-month scope covers around 16 kilometres of underground development, ground support and surface infrastructure, with work scheduled to start in July 2026.
Fourmile sits directly adjacent to the Goldrush project, where Barminco already operates for Nevada Gold Mines — a joint venture 61.5% owned by Barrick and 38.5% by Newmont. The proximity should generate logistical and staffing synergies as both assets ramp up.
Should investors sell immediately? Or is it worth buying Barrick Mining?
Strategically, Fourmile is a cornerstone of Barrick’s plan to spin off a minority stake in its North American gold assets, including Nevada Gold Mines, Pueblo Viejo in the Dominican Republic and Fourmile itself. The initial public offering is slated for completion by the end of this year, and the company is also exploring a secondary listing on the London Stock Exchange to raise its profile among European investors.
The production figures underscore the urgency behind the spin-off. In the first quarter, Barrick mined 719,000 ounces of gold, comfortably above its own guidance of 640,000 to 680,000 ounces. All-in sustaining costs came in at $1,708 an ounce, while the gold price is testing $4,150 — leaving a generous margin.
Wall Street has taken notice. Of the 15 analysts covering the stock, 13 rate it a buy. UBS recently raised its price target from $50 to $54, while the stock currently changes hands at around $46 (based on the European listing equivalent). The technical picture remains neutral, with the relative strength index at 47.9.
Barrick Mining at a turning point? This analysis reveals what investors need to know now.
The next catalyst comes in August, when Barrick reports second-quarter earnings. Investors will be looking for updates on the North American IPO timeline, the pace of the buyback and whether the production beat can be sustained. For now, the fundamentals are firing on all cylinders — the question is whether the market will eventually close the valuation gap.
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