Pinnacle Silver & Gold Corp (TSXV: PINN)
Building a New Americas-Focused Silver and Gold Company
Canada-based global gold mining giant Barrick Mining (B) reported strong financial results and announced plans to proceed with the spin-off and listing of its top North American gold assets. The announcement of this IPO comes as the world’s second-largest gold producer seeks to capitalize on an unprecedented surge in gold prices to enhance profitability, following years of underperformance relative to industry peers.
Financial reports show that Barrick Mining achieved record-high quarterly cash flow and earnings per share. The company’s gold production in the fourth quarter reached 871,000 ounces, marking a 5% increase from the previous quarter. Revenue amounted to approximately $6 billion, representing a 64.4% year-on-year increase and exceeding market expectations by about $840 million. The 2025 gold and copper production figures were largely in line with analyst forecasts.
Driven by a 70% surge in gold prices in 2025 and strengthening copper prices in the second half of the year due to demand from AI data centers and the new energy sector, Barrick Mining’s operating cash flow in the fourth quarter reached approximately $2.73 billion, while free cash flow stood at around $1.62 billion, reflecting quarter-on-quarter growth of 13% and 9%, respectively. The fourth-quarter GAAP earnings per share were $1.43, and non-GAAP adjusted earnings per share were $1.04, representing significant quarter-on-quarter increases of 88% and 79%, respectively, and far surpassing Wall Street expectations.
The company also announced a quarterly dividend of $0.42 per share, a substantial 140% increase from the third quarter. Starting from the fourth quarter of 2025, the new dividend policy aims to allocate at least 50% of attributable free cash flow to dividends. This includes raising the base quarterly dividend by 40% to $0.175 per share, with additional year-end distributions based on performance. For 2026, the company expects gold production to range between 2.9 million and 3.25 million ounces, while copper production is projected to be between 190,000 and 220,000 tons.
In a statement, Barrick indicated plans to sell a minority stake in its newly established North American mining subsidiary while retaining a “significant” controlling interest. The IPO is expected to be completed by the end of 2026. The assets to be spun off will include its interests in the Nevada joint venture in the United States, the Fourmile project, and a mine in the Dominican Republic. Assets in higher-risk regions such as Africa and Pakistan will continue to be held by the parent company. The company’s board stated that this move aims to maximize shareholder value by advancing preparations for the initial public offering of its North American gold assets.
Analysts noted that if the market grants its North American assets a valuation premium comparable to industry peers, the value of these assets could approach $62 billion. Additionally, the spin-off could make the new business unit more attractive for potential acquisition interest. Recently, under the leadership of interim CEO Mark Hill, the company has undertaken a series of reforms, including restructuring regional operations and adjusting the management team.
