A $2 Million Reason Why Barrick Mining Stock Is Down

Barrick Mining Corporation (B) is suddenly having a rough time on Wall Street, even as gold prices continue to soar. Shares slipped 6.41% on Aug. 10 after the gold-mining company reported its fiscal 2026 second-quarter results, with investors focusing on an earnings miss, rising operating costs, lower ore grades and higher royalties that overshadowed the benefit of soaring gold prices. Adding to the pressure is Barrick’s newly announced $1.95 billion deal with Newmont Mining Corporation (NEM).

The agreement resolves their long-running dispute over the Nevada Gold Mines (NGM) joint venture and clears the way for Barrick to move ahead with its planned IPO of its North American gold assets. NGM was created in 2019 when Barrick and Newmont combined their major Nevada operations into a single joint venture. Barrick owns 61.5% of NGM and operates the business, while Newmont holds the remaining 38.5%. At first glance, the new deal could be a positive for Barrick, but investors aren't completely sold yet. 

Under the agreement, Newmont will pay Barrick approximately $1.95 billion, while the two miners will also reshuffle several Nevada assets. Barrick will contribute its Fourmile project, while Newmont will add its Fiberline and Mike developments to the joint venture. While the agreement removes a major roadblock to Barrick’s planned North American IPO, investors are still questioning whether the company got enough in return. In fact, Bloomberg Intelligence analysts Grant Sporre and Emmanuel Munjeri said the settlement appears “a little too low” given the quality of the asset, raising concerns that Barrick may have left value on the table, even though the deal helps repair ties with Newmont and clears the way for the IPO.

Moreover, the bigger question for investors is whether this restructuring will genuinely create more value for existing Barrick shareholders or simply move some of the company’s crown-jewel assets into a separate vehicle. With higher costs weighing on the latest results and uncertainty surrounding the North American IPO still hanging over the stock, Barrick has given investors plenty to think about. So, is the recent sell-off a warning sign, or could the weakness present an opportunity? 

About Barrick Stock

Headquartered in Toronto, Canada, Barrick Mining is one of the world’s leading mining companies, with a strong portfolio of long-life gold and copper assets spread across 17 countries and five continents. The company is also the largest gold producer in the United States, with a mix of world-class operating mines and promising development projects. Through responsible mining, strong partnerships, and disciplined growth, Barrick is focused on creating long-term value for shareholders and other stakeholders.

Now, with the Newmont settlement and consent in place, Barrick can finally move ahead with an ambitious plan to IPO a minority stake in a newly formed North American gold company. The goal is to unlock more value from some of its most attractive regional assets. The new company is expected to include Barrick’s interests and operatorship in Nevada Gold Mines and Pueblo Viejo, the Fourmile project, other North American exploration properties, and assets contributed by Newmont. 

If the plan goes through, it would create the only pure-play North American gold company with a portfolio of high-quality, long-life assets in low-risk jurisdictions. Barrick expects to complete the IPO by the end of 2026, subject to market conditions and the necessary approvals. Current CEO Mark Hill will lead the new company once the separation is completed. With the IPO now moving closer to reality, Barrick is betting that putting its North American gold assets under one roof could help shine a brighter spotlight on their value, and potentially give investors another reason to take notice.

However, investors haven’t exactly warmed to Barrick’s planned spin-off, with concerns mounting over execution risks and the separation of some of the company’s core assets. With a market capitalization of $67.28 billion, Barrick shares are down 6.25% so far in 2026, highlighting the market’s cautious stance toward the company’s latest strategy. 

Still, the recent pullback doesn’t tell the whole story. Barrick has delivered a strong longer-term performance, helped by elevated realized prices for both gold and copper. Over the past year, the stock has surged 78.77%, comfortably outperforming the broader S&P 500 Index ($SPX), which has gained 21.49% over the same period.

Inside Barrick’s Q2 Earnings Report

Barrick’s fiscal 2026 second-quarter results delivered plenty of positives, but also one major disappointment that sent investors running for the exits. Reported on Aug. 10, the quarter showed strong revenue growth, higher production, rising profits, and hefty shareholder returns, but an adjusted EPS miss and sharply higher costs took some of the shine off an otherwise solid performance.

Revenue jumped 44% year-over-year (YOY) to $5.29 billion, comfortably ahead of Wall Street’s $5.08 billion estimate. Gold production came in at 796,000 ounces, up 11% sequentially and nearly flat year over year, while also beating Barrick’s guidance range of 730,000 to 770,000 ounces. The stronger-than-expected production was helped by an ahead-of-schedule ramp-up at Loulo-Gounkoto and faster-than-expected recovery at Pueblo Viejo. Net earnings also climbed 50% YOY to $1.22 billion.

However, the headline numbers weren't enough to satisfy investors. Adjusted EPS surged an impressive 74% YOY to $0.82, but still fell short of Wall Street’s $0.84 estimate. Barrick also declared a $0.175 quarterly dividend and repurchased $1.2 billion of shares during the quarter, taking total shareholder returns to $1.50 billion, a remarkable 242% increase YOY. Operating cash flow rose 28% to $1.70 billion, showing that the company continued to generate strong cash despite the challenges.

The biggest concern was rising costs. Gold cost of sales climbed to $1,993 per ounce, compared with $1,654 in the year-ago quarter, mainly because of lower grades processed at Carlin, Cortez, and North Mara, higher fuel costs, and increased royalties linked to stronger realized gold prices. All-in sustaining costs (AISC) also jumped 11% YOY to $1,866 per ounce. In other words, Barrick is benefiting from higher gold prices, but it is also having to spend more to produce that gold.

Commenting on the Newmont agreement, CEO Mark Hill called it a “historic” milestone for Barrick, especially as Newmont has formally consented to the company’s planned North American IPO, removing a major hurdle to the separation. The agreement also settles outstanding disputes between the two partners and expands the Nevada Gold Mines (NGM) complex to nearly 100 million ounces of gold. Hill believes the broader partnership will significantly strengthen Barrick’s asset base while giving the company greater flexibility to unlock value from its North American gold portfolio.

Despite the mixed quarter, Barrick remains on track to meet its 2026 production and cost guidance. Gold production guidance remains at 2.90 million to 3.25 million ounces. For 2026, gold cost guidance, including cost of sales of $1,870 to $2,070 per ounce and AISC of $1,760 to $1,950 per ounce, is based on a gold price assumption of $4,500 per ounce. The company also lowered its 2026 total attributable capital expenditure guidance to $3.8 billion to $4.2 billion, from the previous $4 billion to $4.45 billion range, primarily due to reduced spending at the Reko Diq project.

What Do Analysts Think About Barrick Stock?

The latest pullback hasn’t done much to shake Wall Street’s confidence in Barrick. The stock maintains a “Strong Buy” consensus rating, with 15 of the 22 analysts covering the company recommending a “Strong Buy,” while two rate it a “Moderate Buy” and just five give a “Hold” rating. The optimism is also reflected in analysts’ price targets. The average target of $52.61 points to 29% upside, while the Street-high target of $64.06 suggests a potential 57.16% rally from current levels.