Activist Investor Elliott Takes Significant Stake in Barrick Gold

A major player in the investment world has made a substantial move. Elliott Investment Management has acquired a position in Barrick Gold Corporation valued at a minimum of $700 million, catapulting the firm into the ranks of the Canadian gold mining giant's ten largest shareholders. Investments of this nature from activist funds are rarely made without a clear objective. This development raises questions about Elliott's intentions for the miner, which has recently contended with multibillion-dollar asset impairments and operational headwinds.

Despite the corporate challenges, Barrick's recent operational performance presents a paradox. The company reported a net profit of $1.3 billion for the third quarter of 2025, driven by revenues of $4.1 billion—a 23% increase compared to the same period last year. Demonstrating confidence in its financial standing, the board promptly raised the dividend by 25% to $0.125 per share. Furthermore, Barrick executed a share buyback, repurchasing approximately 18.6 million of its own shares during the quarter.

Nevertheless, the company's stock has failed to keep pace with its peers. While Barrick's shares have posted an impressive 128% gain since the start of the year, competitors such as Kinross Gold and Agnico Eagle have outperformed, with advances of 152% and 144% respectively. Market experts suggest this valuation gap is precisely what attracts an activist like Elliott, which likely sees untapped potential for improvement through operational enhancements and strategic repositioning.

Should investors sell immediately? Or is it worth buying Barrick Mining?

Corporate Split Gains Momentum as a Strategic Option

Elliott's entry coincides with a pivotal strategic discussion within Barrick. The company is reportedly considering a radical separation into two distinct, independently traded entities. One unit would be focused on its more stable and predictable North American assets, which include the highly profitable Nevada mines and the promising Fourmile project. The other entity would consolidate the company's portfolio of higher-risk operations located in Africa and Asia.

Such a move would effectively unwind the core structure established by the 2019 merger with Randgold Resources. The driving force behind this consideration is the significant pressure that geopolitical risks have placed on the company's valuation. Earlier this year, Barrick lost control of the Loulo-Gounkoto mine in Mali, leading to a $1 billion impairment charge. Tensions also persist surrounding the Reko Diq project in Pakistan. A corporate split would allow investors to target their investment specifically on the more stable North American operations, while isolating the geopolitical risks associated with the international portfolio.

Leadership Transition Provides a Catalyst for Change

The timing of Elliott's investment aligns with a recent leadership transition. Mark Hill was appointed interim CEO in September, following the departure of former CEO Mark Bristow, who faced criticism over production shortfalls and rising costs. Elliott is likely betting that a fresh start under new executive leadership, potentially combined with a strategic corporate separation, could accelerate a turnaround. This strategic maneuvering is further supported by a powerful tailwind—the price of gold has surged 54% this year, creating a favorable environment for fundamental change within the gold sector.