Barrick Gold Corporation, once the world's largest gold mining company following its landmark 2018 merger with Randgold Resources, is now facing mounting pressure to break up its operations as activist investor Elliott Management builds a significant stake in the company.
Executive Turmoil and Investor Pressure
The situation reached a critical point in September when chief executive Mark Bristow departed abruptly amid growing tensions with chairman John Thornton. The two executives had previously enjoyed a close working relationship during the Barrick-Randgold merger negotiations, spending more than 50 days together in 2018 according to people familiar with the matter.
However, their relationship deteriorated as Barrick repeatedly missed production guidance and gold output declined under Bristow's leadership. By this year, the two were barely on speaking terms according to people who worked with them.
The tension escalated when the board commissioned headhunters Egon Zehnder to review internal candidates to succeed Bristow as CEO, a move that infuriated Bristow when he discovered it.
Operational Challenges Mount
Despite the significant run-up in gold prices throughout 2025, Barrick's share price has underperformed compared to its rivals due to multiple operational setbacks. The company has faced challenges at its mine in Mali, experienced three fatal accidents, dealt with falling gold production, and confronted perceived risks associated with its massive Reko Diq project in Pakistan.
Alec Cutler, fund manager at Orbis Balanced Fund, noted that "Barrick has amazing assets, but in recent years the operating costs went up as much as the gold price, which wasn't great." He added that the high-risk Reko Diq project has become a "distraction" for the company.
Restructuring and Leadership Changes
Elliott Management has built a stake in Barrick worth at least $700 million, encouraged by reports that the board was considering a breakup of the mining giant. The activist investor's move has intensified the pressure on Barrick to restructure.
Hours after news of Elliott's stake emerged, Barrick announced leadership changes designed to sharpen its focus on valuable Nevada gold mines. The company replaced its chief operating officer for North America and appointed a new chief development officer. Sources close to the company indicated these moves were long-planned rather than a direct response to Elliott's investment.
The potential breakup of the $64 billion gold mining empire has captivated the mining sector, which is already experiencing record-high bullion prices and ongoing consolidation. Investors and industry observers are closely watching how Barrick might divide its assets and who might acquire portions of the company, particularly the massive Reko Diq project in Pakistan.
The developments mark a significant reversal for a company that was celebrated for creating one of the smartest deals in the mining sector just seven years ago, but now faces the prospect of unwinding that very merger through corporate restructuring or breakup.
