In a significant strategic shift, Barrick Gold Corp. is evaluating a plan to separate its valuable North American mining operations into a new, publicly traded entity. The Toronto-based miner, which has seen its market standing slip in recent years, hopes this move will reignite investor enthusiasm and close the valuation gap with its peers.
A Strategic Reversal to Unlock Value
The company's board has granted interim chief executive Mark Hill, who took the helm in late September 2025, the authority to explore the creation of a new company housing its key assets in Nevada, USA, and the Dominican Republic. Barrick would retain a controlling majority stake in this new entity, which would pursue its own initial public offering (IPO).
This represents a notable pivot from Barrick's recent focus. Over the past five years, the company has largely exited Canada and concentrated on major international projects, such as the massive Reko Diq copper-gold venture in Pakistan. However, with its stock trading at a persistent discount, leadership is now looking to highlight the value of its top-tier, lower-risk North American portfolio.
Analysts estimate the potential new company could produce approximately two million ounces of gold annually, which would instantly place it among the world's top five gold producers. Royal Bank of Canada analyst Josh Wolfson noted the spin-off could allow these assets to trade at a premium valuation, given their "premier jurisdiction exposure and asset quality." He suggests the plan could lift Barrick's share price by 15% to 20%.
What Assets Are in the Package?
The proposed spin-off would bundle some of Barrick's crown jewels, which collectively account for an estimated 60% of the company's current net value. The package includes:
- Nevada Gold Mines: A joint venture where Barrick holds a 65% stake, with rival Newmont Corp. owning the remainder.
- Pueblo Viejo: A major mine in the Dominican Republic, in which Barrick holds a 60% interest.
- Four Mile: A 100%-owned, high-potential gold deposit in Nevada that Barrick has hailed as "one of the century's greatest gold discoveries."
Wolfson projects the new company could operate with an all-in sustaining cost around US$1,640 per ounce.
Market Reaction and Acquisition Speculation
The announcement has sparked immediate speculation about the future of these assets. Some analysts view the new entity as a potential acquisition target for Barrick's longtime partner and competitor, Colorado-based Newmont Corp.
"In our view, this plan essentially packages up the parts of Barrick the market is currently most excited about into a vehicle that is likely to become an acquisition target for Newmont Corp.," said Shane Nagle, an analyst at National Bank of Canada.
The potential spin-off highlights the changing fortunes of the two mining giants. Newmont has pulled ahead with a market capitalization of US$99 billion and 2024 production of 6.8 million ounces of gold, while Barrick's market cap sits at US$71 billion with 2024 production of 3.4 million ounces.
Nagle also pointed out that separating the North American assets would leave Barrick with a portfolio expected to trade at a lower valuation multiple, just as it needs significant capital to develop the costly Reko Diq project.
Investor opinion on the proposed move appears divided, according to Alexander Hacking of Citigroup Global Markets Inc. Barrick has not specified on which exchange the potential IPO would occur but emphasized it would keep a "significant majority interest" in the new company.
The exploration of this spin-off coincides with Barrick's final exit from Canadian mining. The company recently completed the $1-billion sale of its Hemlo gold mine in Ontario, its last remaining operational asset in Canada, solidifying its shift away from its home country.
