Barrick Gold’s Strategic Pivot Gains Investor Confidence

Barrick Mining CA0679011084

Barrick Gold Corporation's equity has delivered a standout market performance, appreciating by nearly 150% since the start of the year. This impressive rally has prompted questions about its sustainability. Analysts at BNP Paribas Exane believe there is further room for growth, upgrading the stock from "Neutral" to "Outperform" on Friday. Their revised outlook centers on a radical corporate strategy: a potential separation of the company's North American operations, designed to unlock significant hidden value within the mining giant.

This strategic shift represents a clear departure from the path set by former CEO Mark Bristow, who departed in September 2025. Under interim CEO Mark Hill, Barrick is not only advancing the potential separation but is also actively de-risking its portfolio. Two key recent transactions underscore this cleanup effort:

• Divesting Non-Core Assets: The sale of the Tongon mine in Côte d'Ivoire generated up to USD 305 million for the company on Tuesday.
• Resolving Geopolitical Uncertainty: A USD 430 million settlement with the government of Mali concerning the Loulo-Gounkoto complex removed a major overhang that had been weighing on market sentiment.

Market observers suggest these moves may be influenced by pressure from activist investor Elliott Management, which has reportedly advocated for a corporate split. The market's response has been positive, with shares trading at CAD 56.79, close to the 52-week high of CAD 59.27 reached on December 1.

Unlocking Value Through a Potential Spin-Off

The upgrade from BNP Paribas Exane validates the aggressive strategic pivot. Analysts view the planned spin-off of Barrick's premium North American assets as a crucial value catalyst.

This initiative gained formal momentum last Monday when the board of directors authorized management to explore an initial public offering (IPO) for a new subsidiary. This entity, often referred to as "NewCo," would consolidate the company's crown jewel assets:
* The Nevada Gold Mines joint venture
* The Pueblo Viejo operation in the Dominican Republic
* The 100% owned Fourmile development project

The structural maneuver aims to address Barrick's valuation discount compared to peers like Newmont Corporation. While the current conglomerate structure trades at a lower multiple, the secure and profitable North American assets could command significantly higher valuation multiples as a standalone entity.

Investor Focus Shifts to 2026 Guidance

Attention now turns to February 2026. Company leadership has committed to providing a concrete update on the status of the IPO review process alongside the release of its full-year 2025 financial results. In the interim, the share price trajectory is expected to remain closely linked to movements in the gold price and any further details that emerge regarding the future corporate structure.