Barrick Gold Charts a New Course with Strategic Overhaul

Barrick Gold Corporation is embarking on a significant strategic shift aimed at unlocking shareholder value. Moving beyond a reliance on gold price movements alone, the company's leadership is considering a separation of its core North American assets. This potential restructuring has drawn positive initial reactions from the market, raising the question of whether it can finally narrow the valuation gap with its industry peers.

Before delving into future plans, Barrick's management has successfully addressed key operational uncertainties. In late November, a protracted dispute with the government of Mali concerning the Loulo-Gounkoto complex was formally resolved. The cessation of legal proceedings removes a substantial geopolitical overhang for the miner.

Furthermore, on December 2, the company finalized the divestiture of its non-core Tongon mine in Côte d'Ivoire for up to $305 million. This transaction underscores a continued strategy of portfolio optimization, focusing capital and management attention on its highest-quality, Tier-One operations.

The "NewCo" Proposal: A Potential Value Catalyst

The centerpiece of Barrick's new direction is a board-approved exploration of a public listing for its premier North American gold assets. Codenamed "NewCo" for now, this entity would consolidate the company's interests in the Nevada Gold Mines joint venture, the Pueblo Viejo mine in the Dominican Republic, and the Fourmile development project.

The rationale behind this move is to create a distinct, pure-play investment vehicle for premium North American production. Management believes such a structure could command higher valuation multiples than the current diversified conglomerate. This initiative follows reported engagement with the activist investment firm Elliott Investment Management. Should the plan proceed, Barrick would retain majority control of NewCo, floating only a minority stake on the public market.

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

Market Reaction and Financial Backdrop

Analysts have begun to price in the potential benefits of this restructuring. National Bankshares recently raised its price target on Barrick to C$77.50, reaffirming its "Outperform" rating. This new target suggests an upside potential of approximately 37% from recent trading levels.

The stock's momentum is also supported by a robust fundamental environment. While the company faces industry-wide cost pressures—with its 2025 All-In Sustaining Costs (AISC) forecast now set between $1,460 and $1,560 per ounce—elevated gold prices continue to underpin strong profitability. A notable surge in trading volume points to increased institutional interest following the strategic announcements.

The Path Forward

Barrick Gold is aggressively redefining itself through a dual focus on operational excellence and strategic portfolio management. The resolution of the Mali situation secures its production base, while the proposed North American asset separation acts as a potential catalyst for a comprehensive market re-rating.

Investor attention now turns to February 2026. When the company reports its full-year 2025 results, management will be expected to demonstrate concrete progress toward the potential IPO to validate the market's current confidence and the strategic vision now in motion.