Barrick Mining: Agreement with Newmont
On August 10, things were buzzing at Barrick Mining. First, after lengthy negotiations, an agreement was reached with Newmont. Barrick Mining is contributing the promising Fourmile project to the Nevada Gold Mines joint venture, while Newmont is contributing its Mike and Fiberline projects. In addition, Newmont will pay a one-time cash compensation of USD 1.95 billion. This resolves all legal disputes and obstacles between the joint venture partners. The path is now clear for Barrick’s planned initial public offering (IPO) of a portion of its North American gold projects. The transaction is expected to be completed by the end of 2026. Following the spin-off, Mark Hill will lead the new North American company as CEO. Analysts view the deal critically. Some consider the price Newmont is paying to be too low, as Fourmile is regarded as a very high-quality asset.
In addition, the quarterly results were announced. Gold production reached 796,000 ounces, exceeding the company’s own forecast. This represents an 11% increase compared to the previous quarter. Copper production totaled 56,000 metric tons, within the expected range. Total costs (AISC) were a negative factor, as they rose by 11% to USD 1,866 per ounce. The company cited lower ore grades at the mines, higher fuel costs, and increased government royalty payments as the reasons for this. Consequently, adjusted earnings per share came in at just USD 0.82, missing market expectations by USD 0.02. Despite these headwinds, management is sticking to its full-year production and cost forecasts and expects an operational improvement in the second half of the year compared to the first half.
The quarterly dividend is USD 0.175 per share. In addition, the company repurchased shares worth approximately USD 1.2 billion during the past quarter. This brings the combined payout from dividends and share repurchases to approximately USD 1.5 billion, representing a 242% increase compared to the same period last year. To continue growing organically, Barrick is investing heavily. Copper production is set to double at the Lumwana expansion in Zambia. First production is scheduled for early 2028. At Pueblo Viejo, permitting and construction work are proceeding in parallel for the new tailings facility. Progress on the major Reko Diq project has slowed. Construction of the facility will not begin this year as planned, which is pushing the CapEx forecast down from USD 4.2 billion to USD 3.8 billion. In addition, the sale of the Bambadji project in Senegal to Fortuna Mining for approximately USD 200 million was announced, which is injecting additional liquidity into the company’s coffers.
Desert Gold: On the Verge of Gold Production
Desert Gold’s SMSZ project is located in western Mali along the Senegal-Mali Shear Zone and is considered one of the most productive gold regions in West Africa. The property spans approximately 440 km² and is surrounded by industry giants such as Barrick Mining, Endeavour Mining, and Allied Gold. The current total mineral resource stands at approximately 1.22 million ounces, and management now plans to move into production. The planned 200 metric tons per day gravity processing plant has passed technical acceptance in China and is on its way. Commissioning is scheduled to take place as soon as all equipment has been delivered.
On-site at the Barani East Zone, construction preparations are underway. Arrangements for the water supply are also already underway. A drilling program has identified 13 groundwater targets, and the first well is already being drilled. The preliminary economic assessment (PEA) from November 2025, based on an assumed gold price of USD 2,850 per ounce, showed a net present value of USD 61 million after taxes, with an internal rate of return of 57%. The estimated all-in sustaining costs (AISC) are USD 1,137 per ounce, which would result in strong cash flow at the current gold price. In parallel with mine development, a Phase 1 RC drilling program covering 4,250 m has been underway since April. This program is testing five priority targets in five different zones. The results are not yet available. In addition, a 5,000 m trenching program at Mogoyafara South is in preparation.
In addition to the project in Mali, Desert Gold has secured the approximately 300 km² Tiegba Gold project in western Côte d’Ivoire. The decisive factor was a large ground anomaly identified by Newcrest but never drilled. This anomaly extends approximately 4 km in length and 2 km in width. Initial air-core drilling over the core of the anomaly is planned. As soon as gold production begins in Mali, the company will open a new chapter. It will be able to finance further exploration with its own funds and increase the value of the projects. The share price is also likely to surge, as a gold producer is valued higher than a pure-play explorer.
B2Gold: Growth and Cash Flow Turnaround
B2Gold’s production totaled 203,648 ounces, corresponding to revenue of USD 789.35 million. Earnings per share were USD 0.31, while adjusted earnings were only USD 0.03, attributable to one-time items such as the sale in Finland. Total costs (AISC) were USD 2,356 per ounce sold. These have risen significantly compared to the previous year. Operating cash flow was USD 94 million, while free cash flow was negative at USD 257,516 due to tax payments, production costs, and prepaid shipments. The sale of the 70% stake in FinGold to Agnico Eagle for USD 325 million is not included in this figure. At the end of the quarter, the company had USD 287 million in cash.
The company received the Menankoto exploration license from the Malian Council of Ministers. This will allow the Fekola Regional Project to move forward. The project is located just 20 km from the existing Fekola mill and can be processed there as well. Preparatory overburden removal work has already begun. After ramp-up through the end of 2027, annual production is expected to exceed 150,000 ounces. A fire occurred at the Goose Mine in April, with repair costs estimated at approximately USD 13 million. By the end of the third quarter, processing capacity is expected to increase to 3,200 metric tons per day.
The Masbate Mine in the Philippines produced 51,039 ounces, exceeding expectations. Otjikoto in Namibia produced 23,438 ounces, which also exceeded expectations. The annual production forecast has been revised to 820,000 to 920,000 ounces, which is slightly below the previous upper limit. As of the end of June, prepaid obligations have been settled. All 264,768 ounces covered by contractual agreements have been delivered. Future sales will once again be made at spot prices, which is the main driver of the expected increase in free cash flow. B2Gold repurchased 19 million of its own shares for approximately USD 92 million in the last quarter. The quarterly dividend is USD 0.02.
The outlook for gold could hardly be better. Barrick Mining has reached an agreement with Newmont and can now take its North American projects public. Desert Gold is on the verge of production with its SMSZ project in Mali and could benefit disproportionately from the high gold price. B2Gold has put its prepaid expenses behind it and now expects significantly higher free cash flow, while the Goose Mine is being ramped up again following the fire. All three companies are positioned differently, but each offers potential as long as the rally continues.
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