Barrick Mining (TSX:ABX) just posted one of its strongest quarters in years. Gold production beat guidance, earnings surged higher, and shareholder returns were notable.
Yet the Canadian mining stock still declined following its Q2 report. Valued at a market cap of almost $100 billion, ABX stock is down 15% from its 52-week highs.
Let’s see if the ongoing pullback offers you an opportunity to buy a quality stock at a discount.
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Barrick Gold stock slips despite a strong quarter
Barrick produced 796,000 ounces of gold in the second quarter of 2026, which was 3% above guidance and 11% higher than the first quarter. Copper production came in at 56,000 tonnes.
Net earnings soared 50% compared to the same quarter last year, landing at US$1.2 billion. Adjusted net earnings per share came in at US$0.82, in line with consensus estimates.
Attributable adjusted EBITDA (earnings before interest, tax, depreciation, and amortization), a measure of core profitability climbed 51% year over year to US$2.6 billion.
The bigger story of the quarter is a US$2 billion agreement with Newmont Corporation that folds Barrick’s Fourmile project and Newmont’s Fiberline and Mike properties into the Nevada Gold Mines joint venture.
The deal also settles outstanding disputes between the two partners and comes with an updated governance structure. Newmont will now have a say in appointing NGM’s general manager and will place an employee inside Barrick’s executive team at the joint venture.
In simple terms, this removes a years-long source of friction between two of the world’s largest gold miners. It also clears a key obstacle for Barrick’s plan to spin off its North American assets through an initial public offering by the end of 2026.
Hill described the logic behind the deal on the call. “My discussions with Natascha and Newmont right from word go was how do we get this together so we can optimize NGM,” he said, adding that the goal is to boost processing capacity and stop trucking ore across the state.
Production, costs, and guidance all point the right way
Barrick kept its full year 2026 guidance unchanged, with gold production expected between 2.9 million and 3.25 million ounces and copper between 190,000 and 220,000 tonnes.
The Lumwana copper mill expansion in Zambia remains on budget, with first copper expected by early 2028. The Pueblo Viejo expansion in the Dominican Republic is advancing too, with 90% of resettlement packages now accepted.
Barrick also trimmed spending at its Reko Diq project in Pakistan, cutting 2026 capital expenditure guidance for the project nearly in half. That reduced the company’s total 2026 capital spending guidance to a range of $3.8 billion to $4.2 billion.
The company returned $1.5 billion through dividends and share buybacks, more than double the prior quarter’s payout.
Is Barrick Gold stock a buy right now?
Here is my take. The underlying business is healthier than the stock price drop suggests. Production beat guidance for a third straight quarter, costs stayed on target, and the Newmont settlement removes a real overhang on the stock.
Analysts tracking the Canadian gold stock forecast adjusted earnings per share to expand from US$2.42 per share in 2025 to US$5.03 per share.
If the mining stock is priced at 16 times forward earnings, lower than its 10-year average of 18.9 times, it could double within the next four years.
For investors comfortable holding a gold mining stock through short-term noise, I see this dip as a reasonable entry point rather than a warning sign.
Gold prices remain elevated, Barrick’s balance sheet is strong with US$1.2 billion in net cash, and the North American IPO (initial public offering) could unlock further value later this year.
