Barrick Gold Resolves Mali Dispute, Securing Key Mine and Strategic Momentum

Barrick Mining CA0679011084

Barrick Gold has successfully concluded a two-year dispute with the government of Mali, regaining full operational control of its critical Loulo-Gounkoto mining complex. This resolution removes a significant geopolitical overhang for the company and provides a stable foundation for its recent share price strength, which has seen an advance of 186% over the past twelve months.

The settlement, alongside a major asset sale in Canada and potential IPO plans, underscores a broader strategic repositioning underway at the gold mining giant.

The company confirmed an agreement has been reached, ending all legal and arbitration proceedings initiated by Mali. The conflict originated when Malian authorities assumed control of the operation following the introduction of a new mining code in 2023, which sought greater state revenue and ownership.

Under the deal, Barrick will make a payment of between $430 million and $437 million (244 billion CFA francs). Crucially, the Malian government has ordered the return of three tonnes of gold, seized in January, with an approximate market value of $400 million. This effectively offsets a substantial portion of the settlement cost, resulting in a relatively neutral net impact on the company's balance sheet. Analysts view the return of this Tier-1 asset to full production as a major positive, outweighing the one-time financial outlay.

Shares had already touched a new 52-week high of $44.26 ahead of the official announcement and maintained these elevated levels as the market digested the details of the restart plan.

A Week of Strategic Portfolio Moves

The Mali resolution anchors a strategically pivotal week for Barrick’s management. In a parallel move, the company announced the sale of its Hemlo gold mine in Canada to Carcetti Capital Corp for up to $1.09 billion. The transaction includes $875 million in cash, providing a significant liquidity boost.

Furthermore, Barrick is evaluating a separate initial public offering (IPO) for its North American assets. This initiative aims to decouple the valuation of its stable, lower-risk jurisdictions from its more geopolitically complex international projects.

Market reaction has been positive. In response to these developments, analysts at BNP Paribas Exane upgraded Barrick's stock from "Neutral" to "Outperform," citing the removal of the Mali risk as a key catalyst.

Operational Strength and Market Context

Barrick enters this new phase from a position of operational and financial strength. The company's impressive share performance, which has significantly outpaced the broader gold miners index, has been driven by record gold prices in 2025 and proactive portfolio management. The strategy of divesting lower-margin assets like Hemlo while securing core Tier-1 operations like Loulo-Gounkoto has garnered clear approval from institutional investors.

The resolution also concludes a period of heightened regulatory uncertainty in Mali, a pressure that had affected other Western mining firms operating under the new code.

Forward Focus: Ramp-Up and Restructuring

Attention now turns to the pace of the restart at Loulo-Gounkoto. Management has described the process as "gradual," with a focus on safety and retraining for returning personnel. The timeline for a return to full capacity will be a critical monitor for investors.

From a technical perspective, the stock is trading just below its recent resistance level of $44.26. With the Mali situation resolved and over $800 million in fresh cash from the Hemlo sale, Barrick approaches the next earnings season with a reinforced position. Additional momentum could come from further details on the proposed North American IPO structure, which the company has suggested could be a catalyst in early 2026.