Newmont’s Veto Power: The Strategic Stalemate Facing Barrick Gold

Barrick Mining CA0679011084

Barrick Gold's share price has been enjoying a positive trend, yet a significant strategic impasse looms behind the scenes. The miner's ambitious plan to spin off its North American operations faces a potential roadblock, with its direct competitor, Newmont Corporation, holding considerable sway over the outcome.

At the heart of the issue is the Nevada Gold Mines (NGM) joint venture, the cornerstone of Barrick's operations on the continent. While Barrick maintains a majority 61.5 percent stake, Newmont's 38.5 percent ownership comes with critical contractual rights that could thwart the separation.

According to a Reuters report, the partnership agreement establishes two key conditions:
* Any transfer of NGM interests requires the partner's consent.
* A right of first refusal is granted to the other party.

This dynamic represents a complete reversal of the power balance since 2019, when Barrick itself attempted to acquire Newmont. Today, the American rival effectively holds a veto over a core part of the Canadian company's strategic direction.

Leadership Transition and Portfolio Valuation

The uncertainty arrives during a period of executive change for Barrick. Following the departure of Mark Bristow, interim CEO Mark Hill is steering the company while a permanent leadership solution is sought. Major investors, including BlackRock and activist fund Elliott Management, are closely monitoring the situation.

The proposed spin-off entity would include not only NGM but also the Pueblo Viejo mine and the Fourmile development project. Analysts have valued this combined portfolio at approximately $42 billion. However, friction has emerged regarding Fourmile's expansion, which requires funding from Newmont. Newmont's CEO, Natasha Viljoen, has reportedly requested more detailed information before committing capital, creating further delay.

Despite a notable rally of 130 percent in 2025, Barrick's stock performance over a five-year horizon continues to trail that of its peer, Agnico Eagle.

Analyst Confidence Amidst the Uncertainty

Market experts remain optimistic about Barrick's prospects in spite of these strategic challenges. The firm Jefferies recently named Barrick its top pick among major gold producers for 2026, raising its price target to $55 per share. Similarly, BNP Paribas Exane upgraded the stock to "Outperform," citing expected margin improvements and an attractive valuation relative to the sector.

Investors are looking toward February 5, 2026, for concrete answers. On that date, Barrick is scheduled to release its fourth-quarter results. The market anticipates that this event will provide much-needed clarity on the spin-off timeline and the status of negotiations with Newmont.

@ boerse-global.de | CA0679011084 NEWMONT’S