Barrick Gold Announces Major Corporate Restructuring with North American Assets Spinoff
The world's second-largest gold producer, Barrick Gold Corp., has unveiled a significant strategic shift with plans to spin off its premier North American gold assets through an initial public offering. This bold move comes as the mining giant seeks to reset its trajectory after years of trailing behind competitors in the sector.
Leadership and Strategic Direction
Barrick has appointed interim chief executive officer Mark Hill to lead the company through this transformative period. Hill's appointment follows the abrupt departure of former CEO Mark Bristow in September, marking a pivotal moment in the company's leadership transition. Since taking the helm, Hill has implemented sweeping organizational changes, including restructuring regional operations and overhauling the senior management team.
The announcement arrives amid growing investor pressure, with Bloomberg News reporting that activist investor Elliott Investment Management LP has acquired a substantial stake in Barrick. This development underscores the increasing scrutiny facing the mining company as it navigates a challenging market environment.
Details of the Proposed Spinoff
According to the company's Thursday statement, Barrick will sell a minority stake in the new North American unit while maintaining a "significant" majority holding. The IPO is expected to be completed by late 2026, representing a carefully timed strategic maneuver.
The spinoff will encompass Barrick's joint-venture interests in Nevada, including the valuable Fourmile discovery, along with a mine in the Dominican Republic. Meanwhile, assets located in higher-risk jurisdictions such as Africa and Pakistan will remain with the parent company, reflecting a strategic focus on geographic risk management.
Valuation and Market Implications
Bloomberg Intelligence analyst Grant Sporre estimates that Barrick's North American assets could be worth nearly US$62 billion if investors assign the spinoff a premium comparable to that of North American rival Agnico Eagle Mines Ltd. This valuation highlights the substantial potential value embedded in these assets.
However, the restructuring could also make the new unit more vulnerable to takeover interest. Bloomberg News reported in October that Newmont Corp. was examining a potential deal to gain control of Barrick's prized Nevada assets, noting that Newmont already holds a minority stake in a Nevada joint venture with Barrick.
Financial Performance and Investor Relations
Barrick has faced consecutive years of declining gold output despite soaring gold prices, resulting in the company trading at a lower valuation relative to industry peers. In response, the board—led by chairman John Thornton—has intensified efforts to attract investors through enhanced shareholder returns.
On Thursday, Barrick more than doubled its fourth-quarter dividend to US$0.42 per share from the previous three months and disclosed that it had repurchased US$500 million of stock during the final quarter of 2025. These measures demonstrate the company's commitment to bolstering shareholder value amid its broader restructuring efforts.
The company emphasized in its statement that "following rigorous analysis, the board has decided to move forward with preparations for an initial public offering of Barrick's North American gold assets in order to maximize shareholder value." This declaration underscores the strategic rationale behind the spinoff as Barrick positions itself for renewed growth and competitiveness in the global gold mining industry.
