Barrick Gold Considers Spinning Off Core North American Assets

Barrick CA06849F1080

In a strategic shift driven by shareholder pressure, Barrick Gold is moving toward a potential separation of its most valuable North American gold mining operations. The company's board authorized a formal review of an initial public offering (IPO) for these assets on December 7, 2025. This decision follows a public campaign by activist investor Elliott Management, which built a significant stake in November and has been pushing for a corporate restructuring to unlock shareholder value.

The impetus for this strategic review stems directly from Elliott Management's involvement. The hedge fund publicly disclosed its substantial position in Barrick late last year, criticizing the company's stock performance. Elliott argued that Barrick's shares had underperformed the record-high gold prices seen in 2025. According to the activist, the market was failing to appropriately value Barrick's top-tier North American mines because they were bundled with the company's higher-risk international projects in Africa and the Middle East. The board's decision to explore a spin-off is a clear response to this pressure.

The Proposed "NewCo" Portfolio

The new entity, referred to internally as "NewCo," would consolidate Barrick's most stable and profitable mines into a standalone, pure-play gold company. The primary goal is to separate these low-political-risk assets from the group's more geopolitically exposed operations elsewhere. The planned portfolio includes:

• Nevada Gold Mines: This key joint venture with Newmont Corporation.
• Pueblo Viejo: The large-scale mine located in the Dominican Republic.
• Fourmile: A high-grade gold discovery in Nevada, which is wholly owned by Barrick.

Under the current proposal, Barrick intends to sell a minority stake in the new company through an IPO while retaining majority control.

Market Reaction and Share Price Context

The market's initial response to the announcement was muted. On December 8, Barrick's stock on the New York Stock Exchange declined by 2.49 percent to close at $40.02. The share price has experienced significant volatility over the preceding twelve months, trading between $15.11 and $43.08. This wide range reflects both the operational challenges faced by the miner and the recent speculative premium added to the stock due to Elliott Management's activist campaign.

Next Steps and Timeline

Barrick aims to complete its strategic review in early 2026, with further details expected when the company reports its full-year earnings in February. The critical unknowns are how the market will value the proposed "NewCo" and how it will subsequently price Barrick's remaining international portfolio of mines. If the board proceeds, the initial public offering for the new entity could take place in the first half of 2026.