Barrick Gold Secures Long-Term Future for Key Mali Mining Operations

Barrick Mining CA0679011084

A significant source of uncertainty for investors has been resolved. Barrick Gold, the Canadian mining giant, has successfully negotiated a settlement with the government of Mali, securing access to one of its most critical mining complexes for an additional ten years. This development removes a substantial overhang that had been weighing on the company's outlook.

The agreement arrives amid an already favorable market environment for the company. Analysts had previously responded positively to Barrick's strong fourth-quarter 2025 results. In a notable move on February 10, the investment bank Stifel raised its price target for Barrick shares significantly, from 65 to 95 Canadian dollars, while reaffirming its "Buy" rating.

With the legal dispute settled, management can now redirect its full focus and resources toward core operational activities rather than costly litigation. Furthermore, the successful negotiation framework may serve as a potential model for other mining operators facing similar regulatory challenges in West Africa.

Details of the Settlement Agreement

The conflict, which had loomed over the company since Mali introduced a new mining code in 2023, centered on government demands for increased tax revenues and a larger state share in resource projects. The finalized settlement brings this dispute to a definitive close. As part of the deal, Barrick has withdrawn its arbitration case before the World Bank tribunal. In return, Malian authorities have dropped all legal proceedings against the company, released detained employees, and fully restored operational control of the Loulo-Gounkoto complex to Barrick.

Operational and Financial Significance

The ten-year extension of the mining license is crucial for Barrick's global production profile. Located in western Mali, the Loulo-Gounkoto complex is among the company's most profitable global assets, generating approximately $900 million in revenue in 2024 alone. A recent feasibility study underscores the site's long-term potential, with detailed projections for its two mining methods:

• Open-pit operations: A projected remaining mine life of 6 years.
• Underground operations: Significant potential extending for 16 years.
• Annual production target: Roughly 420,920 ounces of gold.

This newfound operational certainty supports Barrick's broader global production forecast, which targets total output of between 2.90 and 3.25 million ounces of gold by 2026.