Barrick Gold Considers Major Corporate Restructuring

Canada's mining powerhouse Barrick Gold is evaluating a transformative corporate division that would separate its operations into two distinct entities. Board members are actively debating a potential split that would create one company focused on North American assets and another managing African and Asian holdings. This strategic shift comes as investors enjoy substantial share price appreciation, raising questions about the timing and implications of such a structural overhaul.

The restructuring discussions follow an exceptional third-quarter 2025 performance where Barrick delivered multiple record-breaking financial results:

• Operating cash flow reached $2.4 billion (company record)
• Free cash flow surged to $1.5 billion (representing 274 percent growth)
• Revenue climbed to $4.1 billion (a 23.2 percent increase)
• Net profit achieved $1.3 billion

This financial strength stemmed from a 4 percent expansion in gold production combined with favorable gold price movements. Market response has been overwhelmingly positive, with shares advancing 12 percent in the latest trading week and doubling in value over the preceding six-month period.

Strategic Shift Toward Political Stability

Interim CEO Mark Hill has clarified the strategic direction behind the potential reorganization. Barrick intends to concentrate its future operations on politically stable regions, specifically targeting mines in Nevada and the Dominican Republic for primary development. This reorientation would involve spinning off or divesting African assets along with the Reko Diq mine in Pakistan.

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

The market immediately responded to this strategic clarity, with Barrick's Toronto-listed equity gaining 3 percent following the announcements. The company's North American operations are considered crown jewels within its portfolio, while African and Pakistani projects carry elevated geopolitical risk profiles that complicate operations.

Shareholder Returns Accelerate

Barrick is channeling its substantial cash generation toward enhanced shareholder returns through multiple avenues. The company has raised its quarterly base dividend by 25 percent to $0.175 per share while simultaneously executing an aggressive share repurchase initiative. The buyback program has already deployed $1.0 billion this year alone.

This robust capital return strategy is attracting significant institutional interest. Bank of New York Mellon Corp established a new position exceeding 1.6 million shares valued at approximately $33.8 million. Additional investment firms have initiated positions while equity researchers across the sector have been upgrading their price targets for Barrick stock.