Barrick's Nevada Truce Paves the Way for a Split — But the Market Is Still Weighing the Price

Barrick and Newmont resolve Nevada Gold Mines disputes with $1.95B payment, clearing path for Barrick's US listing and restructuring.

The world's two largest gold producers have decided that cooperation beats litigation. Barrick Mining and Newmont have buried the hatchet over their jointly owned Nevada Gold Mines operation, with Newmont agreeing to pay $1.95 billion in cash within thirty days to settle all outstanding disputes. The agreement also clears the path for Barrick's planned US listing of its North American gold business — a cornerstone of the company's broader restructuring that had been hanging in the balance without Newmont's blessing.

At the heart of the deal is a territorial expansion of the Nevada joint venture. Barrick will contribute its Fourmile project, while Newmont brings its Fiberline and Mike developments into the fold. The cash payment compensates Barrick for those contributions, and the full package — including dispute resolution and reduced friction costs around the planned listing — has been valued at roughly $4 billion. The combined Nevada complex now holds nearly 100 million ounces of resources.

A Company Reorganizing From Within

The settlement removes one of the last obstacles standing between Barrick and its ambitious plan to spin off a minority stake in a newly created North American entity. That vehicle will house Nevada Gold Mines, Pueblo Viejo, Fourmile and the company's North American exploration assets, with a target completion date of end-2026, subject to market conditions and regulatory approvals.

Mark Hill has been tapped to serve as CEO of the new North American company. On Tuesday, Barrick filled the other half of the leadership equation, naming Sebastiaan Bock as Chief Executive Officer, Rest of World, responsible for gold and copper operations outside North America and reporting directly to Hill. The dual leadership structure is more than organizational housekeeping — it's the operational blueprint for a company that intends to function as two separate listed entities.

Strong Quarter Funds the Transition

The restructuring comes at a moment when the underlying business is performing well. Barrick produced 796,000 ounces of gold in the second quarter, beating its own guidance range of 730,000 to 770,000 ounces, alongside 56,000 tonnes of copper. Revenue reached $5.29 billion, with operating cash flow of $1.70 billion. Net income jumped 50 percent to $1.22 billion, helped by a realized gold price of $4,417 per ounce, up 34 percent. Adjusted EBITDA rose 51 percent to $2.5 billion, translating to a 59 percent margin.

Earnings per share came in at $0.73, a 55 percent year-over-year improvement, while adjusted EPS climbed 74 percent to $0.82. The cost picture, however, is less flattering: gold production costs rose 20 percent to $1,993 per ounce, and all-in sustaining costs increased 11 percent to $1,866. Management left full-year production and cost guidance unchanged.

Shareholder returns are accelerating. The company returned $1.50 billion to investors in the quarter, up 242 percent from a year earlier, including $1.209 billion in buybacks under its $3 billion repurchase program. The board also declared a quarterly dividend of $0.175 per share, payable September 15 to shareholders of record on August 31.

Spending Discipline With a Growth Twist

Barrick trimmed its 2026 capital expenditure forecast to a range of $3.8 billion to $4.2 billion, primarily reflecting lower-than-planned spending at Lumwana and Reko Diq. Notably, construction of the Reko Diq plant will not begin in 2026.

But the capex reduction isn't purely a cash-preservation play. The company has increased drilling capacity at Fourmile to 20 rigs, with a pre-feasibility study targeted for end-2028, and Lumwana is expected to deliver its first incremental copper volumes by the end of the first quarter of 2028.

Analysts Split on the Deal's Implications

Wall Street's reaction to the settlement has been mixed. National Bank Financial's Shane Nagle reaffirmed an "Outperform" rating and lifted his price target from C$67.50 to C$70.00. TD Cowen's Steven Green, by contrast, trimmed his target from C$61 to C$59 while maintaining a buy recommendation, citing a model adjustment tied to the Fourmile contribution that results in a 4 percent net asset value dilution.

The stock closed Friday at C$57.80, up 1.3 percent on the day. Over the past seven sessions it has lost 5.2 percent, though it remains 15 percent higher on a monthly basis. The shares still sit 22 percent below their 52-week high of C$74.00, reached in late January. Media reports also point to negative insider sentiment, with an uptick in selling activity quarter over quarter — whether that reflects caution ahead of the complex IPO structure or simple profit-taking after a strong run is a question the market will only answer once the North American spin-off actually lists.