Barrick's Planned Spinoff Faces Mounting Headwinds

Barrick's planned North American asset spinoff contends with a major Nevada dispute with Newmont, a costly Teck royalty, and delays at the Reko Diq copper project.

Barrick Gold is navigating a complex array of challenges as it prepares to list its North American assets. The planned initial public offering (IPO) is encountering significant pressure from multiple directions, including an escalating legal dispute, a substantial royalty burden on a flagship project, and the delayed development of a major copper asset.

Leadership and IPO Framework Advance Amid Challenges

Despite the obstacles, Barrick is proceeding with its spinoff plans. The company has mandated Goldman Sachs as the lead underwriter and is receiving advisory services from seasoned dealmaker Michael Klein. The new entity is expected to consolidate holdings in the Nevada Gold Mines joint venture, the Pueblo Viejo operation in the Dominican Republic, and the Fourmile project. Barrick intends to retain a majority stake in the newly listed company.

The management team for the venture is already in place: Tim Cribb will serve as Chief Operating Officer, Wessel Hamman as Chief Financial Officer, and Megan Tibbals as Chief Technology Officer.

Escalating Nevada Dispute with Newmont Poses Major Risk

A central complication is the intensifying conflict over the Nevada Gold Mines joint venture, in which Barrick holds a 61.5% interest. Newmont has accused its partner of deliberately redirecting specialized personnel and heavy equipment from their shared operations to Barrick’s own Fourmile project. Internal audits are reported to have documented a 23% year-on-year production decline at the Carlin and Cortez sites as a result.

A 30-day negotiation period following a formal notice of default concluded without resolution on March 30. Initial court hearings in Nevada are now scheduled for May 2026. RBC analyst Josh Wolfson has previously highlighted the strategic importance of the Nevada operations to Barrick’s overall valuation, noting that an unresolved legal battle is likely to dampen institutional investor interest in the IPO.

Teck Royalty Clouds Fourmile Project Valuation

Separate from the Newmont conflict, a significant royalty agreement adds another layer of uncertainty to the offering’s valuation. Teck Resources holds a royalty on the Fourmile project that starts at 10% of net profits and increases to 15% after the delivery of six million ounces of gold. According to Scotia Capital analyst Orest Wowkodaw, the royalty area spans 260 square kilometers, substantially overlapping with the Fourmile discovery.

With the current gold price near $4,800 per ounce, Teck’s royalty could generate approximately $300 million in annual revenue, with a potential total value reaching billions of dollars. Wolfson, who previously valued Fourmile at $15 billion, estimates the royalty could reduce the project's worth by roughly 10%.

Reko Diq Copper Project Delayed

Further complicating the broader picture is the slowdown of the Reko Diq project in Pakistan. Citing a deteriorating security situation, Barrick has scaled back development activities and plans to continue its project review until mid-2027. Reko Diq, with an estimated 15 million tonnes of copper, is considered one of the world's largest undeveloped copper-gold deposits and a central component of Barrick’s diversification strategy.

Market Performance Reflects Uncertainty

Barrick's share price has declined by approximately 9% over the past 30 days and is currently trading well below its 50-day moving average. Until the IPO process gains concrete momentum, the outcome of the Nevada legal proceedings, commencing in May 2026, remains a critical benchmark for the company's near-term prospects.