Skyrocketing bullion prices helped Barrick Gold Corp. generate record amounts of cash -- and shareholders are getting rewarded with another dividend hike.

The world’s second-largest gold producer spun out US$1.3 billion of free cash flow in the third quarter, prompting the company to hike its quarterly payout for a third time in the past year. Barrick reported quarterly earnings and revenue that topped analysts’ estimates on Thursday, as surging bullion prices helped offset the impacts of the coronavirus pandemic on its business.

Gold surged to record heights above US$2,000 an ounce in August, helping lift miners’ fortunes. Barrick raised its dividend almost 13 per cent to 9 cents a share, joining rivals Newmont Corp., AngloGold Ashanti Ltd. and Agnico Eagle Mines Ltd. in boosting quarterly payouts. Barrick’s dividend has doubled since mid-2019.

Barrick still plans to announce a new policy of returning capital to shareholders next year, but it will be sustainable, Chief Executive Officer Mark Bristow said Thursday in a phone interview. “I’m more conservative than most, I’ve always been like that.”

The CEO said he will remain vigilant in keeping his eye on the company’s balance sheet given the state of the global economy and the “enormous” associated risks of the pandemic, including governments’ stimulus response.

“We are charting unprecedented waters at the moment, so my natural reaction is: stronger balance sheet than weaker,” Bristow said.

Barrick said Thursday it reduced its debt net of cash by 71 per cent to US$417 million in the quarter, and the company said it has no significant maturities until 2033. Bristow added in the interview the company will be “positive cash” next year.

Barrick rose 5.7 per cent as of 10:01 a.m. in New York after earlier gaining the most intraday since Aug. 17. The shares have climbed 56 per cent this year, closely tracking the gains of a Bloomberg Intelligence index of senior gold miners.