Barrick’s Strategic Spinoff Faces Opposition from Joint Venture Partner

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Barrick Gold (NYSE: B) is navigating a complex landscape of record-breaking financial results and a significant corporate roadblock. While the company reported its strongest annual performance in years, a dispute with fellow mining giant Newmont Corporation threatens to delay a major strategic initiative.

Shares of Barrick closed Monday's trading session at $46.63, marking a 3.3% gain. This upward movement comes as the miner unveiled exceptional 2025 figures, yet a clash over the future of the pivotal Nevada Gold Mines joint venture casts a shadow over its plans.

The company's operational results for the past year are undeniably robust. Driven by an average realized gold price exceeding $3,500 per ounce, Barrick's revenue surged 31% to $16.96 billion. Its net profit more than doubled, reaching $4.99 billion.

In response to this powerful cash generation, management has enacted a substantial dividend increase. The fourth-quarter payout is set at $0.42 per share. A new distribution policy commits to returning 50% of free cash flow to shareholders. The ex-dividend date for this payment is February 27, 2026.

Newmont's Objections to the "NewCo" Plan

At the heart of the current tension is Barrick's intention to spin off its North American gold assets into a separate, publicly traded entity, referred to as "NewCo." An initial public offering is tentatively scheduled for late 2026. The crown jewel of this proposed spin-off is the massive Nevada Gold Mines complex, in which Newmont holds a 38.5% stake.

However, Newmont is applying pressure. According to reports from February 9, the partner is demanding that Barrick first address operational weaknesses and rising costs within the Nevada joint venture. Only after these issues are resolved, Newmont argues, should discussions about a separation proceed. The company is reportedly invoking potential blocking rights to enforce its position.

The planned NewCo could command a valuation surpassing $60 billion. Barrick's strategy involves floating 10-15% of the entity's shares on the public market.

Divergent Views from Market Analysts

Equity researchers have offered mixed reactions to Barrick's situation. CIBC raised its price target to $71, citing long-term gold price forecasts of $6,000 per ounce for 2026. Conversely, UBS lowered its target to $55 but reaffirmed its buy recommendation. Citi adopted a neutral stance, making a slight upward adjustment to a $48 target.

The central uncertainty for investors is whether the disagreement with Newmont will result in a delayed spin-off or force Barrick's management to reconsider its strategic roadmap. The development of negotiations between the two mining powers will be closely monitored in the coming weeks.