Barrick Gold Considers Major Corporate Split to Unlock Value

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The world's largest gold producer, Barrick Gold, is moving toward a significant corporate restructuring that could see it divided into two separate entities. This strategic shift comes in response to considerable pressure from activist investor Elliott Investment Management and aims to address a persistent valuation gap.

At the heart of the plan is the potential spin-off of Barrick's premier North American mining operations into a new, separately listed company. The board of directors formally approved an exploration of this initial public offering on December 1. The proposed new entity, often referred to as "NewCo," would consolidate top-tier assets including the Nevada Gold Mines joint venture, the Pueblo Viejo mine, and the promising Fourmile project. Barrick intends to retain a majority stake in the spun-off business.

A clear financial rationale drives the proposed separation. Currently, Barrick's shares trade at approximately 0.9 times its net asset value (NAV), a discount compared to its North American peers, which frequently trade above 1.0 times NAV. The restructuring is designed to isolate the stable, lower-risk North American mines from the company's more geopolitically exposed international portfolio, thereby allowing the market to value each segment appropriately.

Geopolitical Pressures Accelerate Plans

The urgency behind this corporate overhaul is highlighted by challenges in jurisdictions like Mali. Reports indicate the military government there is seeking roughly $1.2 billion in back taxes and license fees from Western mining firms, including Barrick. Such geopolitical risks in Africa and Asia have weighed on the company's overall valuation—a problem the spin-off seeks to mitigate.

Concurrently, Barrick is advancing the sale of non-core holdings. On December 2, the company finalized the divestment of its stake in the Tongon mine in Ivory Coast for up to $305 million. In total, asset sales could generate close to $2.6 billion for the company by 2025.

Market Reaction and Future Timeline

The market has responded positively to the strategic direction. BNP Paribas Exane upgraded Barrick's stock from "Neutral" to "Outperform" on December 5, setting a new price target of $50 per share.

Looking ahead, Barrick is expected to present detailed plans for the "NewCo" IPO alongside its full-year financial results in February 2026. In the interim, the company's ongoing share buyback program, valued at over $500 million, is likely to provide support for the share price. Operational performance remains robust: Barrick posted $4.1 billion in revenue for the third quarter of 2025 and raised its quarterly dividend by 25 percent.

Barrick's stock is currently trading near its 52-week high of $43.08. With institutional investors holding more than 90 percent of the freely tradable shares, their approval of the separation plan could make the analyst target of $50 a realistic near-term objective.