Barrick Mining Corporation (B) Cash Flow Statement

The OCF/NI ratio of 1.64 in 2026Q1, while down from 2.56 in 2025Q1, still demonstrates that reported earnings are well-backed by cash generation. The narrowing gap suggests that as gold prices surged, net income grew faster than operating cash flow, possibly due to timing of tax payments or working capital changes. Investors should monitor whether this convergence persists as price momentum normalizes.

The trajectory shows a clear inflection starting in 2025Q3, with FCF more than tripling sequentially from $395M to $1.5B, driven by higher gold prices and disciplined cost control. The FCF margin now exceeds peer average, suggesting Barrick is converting revenue into cash more efficiently than many competitors. However, the sustainability of this margin depends on gold price persistence and capex discipline.

The declining capex-to-revenue ratio suggests that Barrick is past the peak investment phase for projects like Reko Diq and Nevada expansion, allowing more cash to flow to shareholders. While absolute capex remains around $1B per quarter, the revenue surge has outpaced spending, improving FCF conversion. Investors should watch for any new large-scale commitments that could reverse this trend.

The persistent negative working capital adjustments, except for 2025Q3 and 2024Q2, indicate that growth is consuming cash for inventory and receivables, a common pattern when revenue accelerates. The 2026Q1 outflow of $297M is modest relative to operating cash flow of $2.6B, suggesting efficient management. However, if gold prices stall, inventory levels could become a drag on cash generation.

The sharp increase in capital returns, particularly buybacks that resumed in 2025Q4, signals management's confidence in cash flow sustainability. With cash reserves of $6.69B and minimal debt, Barrick has ample capacity to fund both growth and returns. The $118M acquisition outflow in 2026Q1 suggests opportunistic M&A, but the overall deployment strategy appears balanced.