Can Barrick Mining's Cash Engine Drive Bigger Returns Ahead?

Barrick Mining Corporation B is leveraging its robust cash generation and solid balance sheet to consistently return value to its shareholders, reinforcing its standing as a capital return-focused gold producer. Barrick generated strong operating cash flows in 2025, with a significant portion funneled back to investors.

At the end of fourth-quarter 2025, Barrick’s cash and cash equivalents were around $6.7 billion. It generated strong operating cash flows of roughly $2.7 billion in the fourth quarter, up 13% year over year, while free cash flow rose 9% to around $1.6 billion. For full-year 2025, operating cash flow surged 71% to around $7.7 billion, and free cash flow shot up 194% to $3.9 billion.

Barrick returned $2.4 billion to its shareholders in 2025 through dividends and buybacks. It repurchased shares worth $1.5 billion during 2025, including $500 million in the fourth quarter. The company increased its dividend to 42 cents per share for the fourth quarter of 2025, marking a 140% increase over the third quarter. It also announced a new dividend policy that targets a total payout of 50% of attributable free cash flow on an annualized basis. It offers a dividend yield of 3.7% at the current stock price with a payout ratio of 29%. A ratio below 60% is a good indicator that the dividend will be sustainable.

Backed by strong liquidity and reliable cash flows, the company is well placed to pursue compelling exploration and development opportunities while sustaining shareholder returns and supporting organic growth.

Among its major peers, Newmont Corporation NEM distributed $3.4 billion to its shareholders through dividends and share repurchases in 2025. Newmont announced an increased dividend of 26 cents per share for the fourth quarter of 2025. NEM executed $3.6 billion from $6 billion of buyback authorization as of Feb. 19, 2026.

Agnico Eagle Mines Limited AEM is capitalizing on its strong free cash flow to boost shareholder value through dividends and share buybacks. Agnico Eagle returned around $1.4 billion to its shareholders in 2025 through dividends and share buybacks. AEM raised its quarterly dividend by 12.5% to 45 cents per share.

B’s Price Performance, Valuation & Estimates

Barrick’s shares have surged 55.8% in the past six months compared with the Zacks Mining – Gold industry’s rise of 43.5%, courtesy of the gold price rally.

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From a valuation standpoint, B is currently trading at a forward 12-month earnings multiple of 12.23, a roughly 5.3% discount when stacked up with the industry average of 12.91X. It carries a Value Score of B.

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The Zacks Consensus Estimate for B’s 2026 and 2027 earnings implies a year-over-year rise of 49.6% and 19%, respectively. The EPS estimates for 2026 and 2027 have been trending higher over the past 60 days.

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B stock currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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