Barrick Considering IPO of North American Gold Assets — 2nd Update

By Robb M. Stewart

Barrick Mining is considering selling a minority stake in its prized North American gold assets, separating them from the miner's gold and copper mines in riskier parts of the world.

The company on Monday said its board authorized management to explore an initial public offering of a new company that would house the North American operations, anchored by its majority-owned operations in Nevada and its mine in the Dominican Republic.

The proposed split marks an escalation of a recently launched review of the Canadian miner's operations that puts greater emphasis on the North American assets, which currently account for more than half of its gold production.

The review comes as Barrick hunts for a new chief executive and looks to grow production. It also comes in the wake of activist investor Elliott Management building up a sizable stake in Barrick, encouraged by the prospect of a breakup.

Barrick said that, if an initial public offering of the assets goes ahead, it intends to retain a significant controlling interest in the new company, along with its various other assets globally. Management plans to explore the potential for floating the North America-focused company into early 2026, and it aims to update the market on its progress with the release of its 2025 financial results in February.

Barrick's New York-listed shares rallied more than 4%, before paring that to a gain of 1.9% in afternoon trading. The shares have soared this year as the price of gold has hit fresh highs, and have climbed about 60% in the last three months.

Steven Green, an analyst at TD Cowen, said the prospect of an IPO is likely to be popular with investors and positive for Barrick's share price, with potential upside for the stock pegged at between 19% and 32% based on comparisons with similar assets.

"The goal, shared by all the shareholders, is to close the valuation gap between Barrick and other large-cap gold producers, particularly given the current strong gold prices," Green said.

Floating a small stake in the North American assets could bring in new investors and offer shareholders two companies--one focused on North America, where Barrick is the largest gold producer in the U.S., and the other on operations in Africa, the Middle East, Asia and South America. Scotia Capital estimated the North American assets could be worth as much as $56 billion, with expectations they produce about 2.1 million troy ounces next year and some 2.4 million by 2030.

Interim Chief Executive Mark Hill said an IPO of the North American assets could give shareholders more "optionality around jurisdiction" in a pure gold company that offers growth. "We are singularly focused on driving improved performance and shareholder value," he said.

Hill was named chief operating officer and interim leader in late September when Barrick unexpectedly parted ways with Mark Bristow, who had been CEO for nearly seven years, since the company bought Randgold Resources.

Randgold, which was founded by Bristow and which he ran for more than two decades, increased Barrick's focus on Africa. Bristow's tenure also saw Barrick exit a number of noncore assets even as it increased its emphasis on copper and placed big bets on developments including the Reko Diq copper-and-gold project in a district of Pakistan challenged by underdevelopment and a lack of infrastructure for the sparse population.

Barrick has operations and projects in 18 countries and five continents. Its assets include six of the world's biggest gold mines.

Despite that, gold production has fallen, held back in part by a long-running dispute with the military junta in Mali that forced the suspension of its mines in the country at the start of the year. Last month, Barrick said it reached an agreement with Mali's government to settle the dispute that would see all charges brought against the company and its employees dropped, four detained workers released and operating control of the Loulo and Gounkoto mines returned to the company. No details were offered on what Mali, which already owns a 20% stake in the mines, is expected to see out of the settlement.

Elliott, known for its strong-arm tactics in pushing for change at companies it invests in, has positioned itself as one of Barrick's top 10 shareholders, a person familiar with the matter has said.

News of Elliott's shareholding emerged after Hill, Barrick's interim CEO, in November said the miner was emphasizing the growth potential of its North American operations and would seek to expand and not just replace the resources it digs up. That includes what Hill at the time said were plans to put a bias in exploration funding toward North America, rather than equally splitting exploration efforts between the Middle East and Africa, Latin America and North America.

A North American business would be centered around the Nevada Gold Mines venture, in which Newmont owns an almost 39% stake, and the Pueblo Viejo mine in the Dominican Republic, which is 40% held by Newmont. It also would include Barrick's wholly owned Fourmile discovery in Nevada, which the Toronto-based company describes as one of this century's most significant gold finds.

Any decision to push ahead with an IPO depends on board approval and market conditions.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

December 01, 2025 14:28 ET (19:28 GMT)