Barrick Gold Embarks on Strategic Restructuring Amid Project Delays

Barrick Gold advances a $60B+ North American spin-off with Goldman Sachs while scaling back its flagship Reko Diq copper project in Pakistan due to cost overruns and security issues.

The mining giant Barrick Gold is navigating a complex dual-track strategy, simultaneously accelerating a major corporate separation while applying the brakes to a flagship copper development. This pivotal moment tests the leadership team that took over following the departure of former CEO Mark Bristow.

Strategic Divestment Gains Momentum with Key Advisors

In a significant move to advance the spin-off of its premium North American assets, Barrick Gold has enlisted the services of investment bank Goldman Sachs and advisory firm M. Klein & Company. The planned initial public offering (IPO) could value the portfolio of mines in the United States and the Dominican Republic at more than USD 60 billion. The core objective of this restructuring is to isolate the highly profitable North American operations from higher-risk jurisdictions, including Mali and Pakistan.

A newly established seven-member leadership team, headed by Chief Operating Officer Tim Cribb and Chief Financial Officer Wessel Hamman, is already in place to steer the new entity. The company intends to sell between 10% and 15% of the shares in this separate unit later in the year.

Flagship Copper Venture Faces Setbacks

Concurrently, development of the massive Reko Diq copper project in Pakistan has encountered substantial hurdles. Barrick has issued warnings of major cost overruns and project delays, rendering previous budget estimates obsolete. Initial phase-one cost projections of up to USD 6.0 billion and a second-phase estimate of USD 3.6 billion are no longer valid.

Citing escalating security concerns in the Balochistan province, the company is scaling back development activities at the site. A comprehensive review of capital requirements and the project timeline is now underway and is expected to extend until mid-2027.

Market Reaction Reflects Mixed Outlook

These contrasting strategic developments are influencing the company's stock performance. After an impressive rally of over 117% year-to-date, Barrick's shares have retreated approximately 9% over the past 30 trading days. The stock closed at CAD 58.02 on the most recent Thursday.

The coming months demand clear prioritization from Barrick's management. While preparations for the multi-billion-dollar North American IPO are entering the final stages with top-tier external support, progress at Reko Diq remains minimal for the foreseeable future. The successful execution and market reception of the North American division's listing later this year will be crucial in determining the financial flexibility available for Barrick's remaining global portfolio of assets.