Barrick’s Planned Spinoff Hits Regulatory and Partnership Hurdles

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Barrick Gold's strategy to separate and list its North American mining operations has encountered a significant obstacle. The company's joint venture partner, Newmont Corporation, holds veto power over the transaction, casting uncertainty over the entire proposal. Despite this development, Barrick's share price recently reached a new 52-week high.

Central to the impasse is a pre-emptive right held by Newmont. According to SEC filings, Newmont can exercise first refusal on Barrick's 61.5% stake in Nevada Gold Mines (NGM), the cornerstone of Barrick's North American portfolio. Any transfer of this interest requires mutual consent from both companies. Consequently, Barrick cannot proceed with its plan to contribute these assets into a new, publicly traded entity without Newmont's explicit approval.

The intended initial public offering would not only include NGM but also encompass the Pueblo Viejo mine in the Dominican Republic and the undeveloped Fourmile project in Nevada. Market analysts have valued the collective North American division at approximately $42 billion.

A Crucial Project Awaits Funding

Further complicating the situation is the Fourmile project, identified as a future flagship operation. Its development is contingent on securing capital investment from Newmont. However, in October 2025, Newmont's incoming CEO Natasha Viljoen indicated the company would await more detailed information from Barrick before committing additional funds.

This creates a delicate strategic dilemma for Barrick. The proposed spinoff cannot advance without Newmont's consent, while the growth trajectory of the new entity relies heavily on the capital needed to bring Fourmile into production.

Management in Transition Amid Key Deadlines

Barrick is currently navigating a leadership transition. Interim CEO Mark Hill is tasked with managing negotiations with Newmont while the search for a permanent chief executive continues. The management team was bolstered on March 1, 2026, by the appointment of Helen Cai as the new Chief Financial Officer. Cai, a seasoned investment banker, brings extensive merger and acquisition experience to the table—a skillset highly relevant to the current corporate maneuverings.

Investor attention is now turning to Barrick's upcoming earnings report scheduled for February 5, 2026, which will cover the fourth quarter and full-year 2025 results. The market anticipates more concrete commentary regarding the spinoff plans and the state of the partnership with Newmont. For the 2026 fiscal year, analysts project earnings per share of $3.39, representing a substantial 48.6% increase over 2025.

Barrick's stock has benefited strongly from robust gold prices, posting a 130% gain throughout 2025. Nevertheless, the unresolved situation with Newmont introduces a layer of uncertainty over the company's near-term strategic direction and valuation.

@ boerse-global.de | CA06849F1080 BARRICK’S