Barrick Gold Considers Major Corporate Split to Unlock Value

Barrick Mining CA0679011084

In a significant strategic pivot, Barrick Gold Corporation, the world's second-largest gold producer, is exploring a separation of its core North American assets. This move, which follows sustained pressure from activist investor Elliott Investment Management, aims to address a persistent valuation gap by potentially listing its most profitable and geopolitically secure mines on the public market.

The strategic review comes on the heels of robust third-quarter 2025 results, providing a solid foundation for the proposed transformation. The company reported a striking 82% quarter-over-quarter increase in operating cash flow, reaching $2.4 billion. Demonstrating confidence in its financial position, Barrick’s board has raised the base dividend by 25% and is advancing a share buyback program that has already reached $1 billion in volume for the current year.

Analysts have responded favorably to both the financial performance and the strategic direction. BNP Paribas Exane upgraded the stock to "Outperform," setting a price target of C$69.74. Similarly, Bank of America reiterated a "Buy" rating with a $48 U.S. dollar target.

Addressing the Valuation Discount

The primary rationale for the potential split is a notable disparity in how the market values Barrick compared to its peers. Despite its share price more than doubling over the past six months, the equity trades at approximately 0.9 times its net asset value (NAV). In contrast, North America-focused competitors like Agnico Eagle command premiums, trading at around 1.5 times NAV.

Market observers attribute this discount largely to Barrick’s exposure to operations in politically uncertain jurisdictions, including Mali, the Democratic Republic of Congo, and Pakistan. By creating a separate, pure-play North American entity, the company believes these lower-risk, high-quality assets could be valued independently and more favorably by investors.

The Proposed "NewCo" Structure

Following a unanimous board decision on December 1, 2025, management is formally assessing an initial public offering for a subsidiary, tentatively named "NewCo." This new entity would house Barrick’s most valuable and stable core assets. The portfolio slated for inclusion consists of its 61.5% stake in the Nevada Gold Mines joint venture with Newmont, the Pueblo Viejo mine in the Dominican Republic, and the Fourmile project in Nevada.

Barrick intends to retain majority ownership of the new company, floating only a minority stake on the exchange. The mining giant has mandated Goldman Sachs and Klein and Company as advisors for the potential transaction.

Portfolio Streamlining and Leadership Transition

This complex restructuring coincides with a broader effort to streamline Barrick’s portfolio. The company is actively divesting non-core assets, having recently sold the Tongon mine in Côte d'Ivoire and interests in the Donlin Gold project. In total, these disposals are expected to generate gross proceeds of approximately $2.6 billion in 2025.

The transformation also unfolds during a period of leadership change. Following the departure of long-time CEO Mark Bristow in September, Mark Hill is currently serving as interim CEO while the search for a permanent successor continues.

Investors await a crucial update, expected when the company releases its full-year financials in February 2026. This announcement will determine whether the mining giant will proceed with the corporate split, a move designed to sharpen its focus on its premier North American business.