Barrick Gold Considers Major Corporate Split Amid Investor Pressure

Significant changes are underway at Canadian mining giant Barrick Gold, with the company contemplating its most substantial organizational shakeup in recent memory. Market response has been positive as the corporation faces mounting pressure from activist investors and acknowledges operational shortcomings that have hampered performance.

Elliott Investment Management has established a substantial position in Barrick Gold, acquiring shares valued at approximately $700 million. This investment places the prominent hedge fund among the company's ten largest shareholders. The timing of this move coincides with internal developments at the mining corporation, which confirmed on November 18, 2025, through an internal memorandum that it would implement comprehensive leadership and structural reforms.

The management overhaul includes the departure of two senior managers and an additional executive. Simultaneously, Barrick has appointed Tim Cribb as the new Chief Operating Officer for North American operations and named Wessel Hamman as regional Chief Financial Officer.

These personnel changes represent only the initial phase of a broader transformation. Board-level discussions are currently focused on potentially dividing the corporation into two separate entities. Under this proposed structure, one company would consolidate the profitable Nevada mining operations, while the other would assume control of the higher-risk projects located throughout Africa and Asia.

In a communication to employees, interim CEO Mark Hill openly acknowledged that operational performance has recently been "inconsistent," representing a clear critique of the company's existing strategic direction.

Operational Challenges Drive Radical Restructuring

Multiple factors have contributed to Barrick's decision to consider such fundamental changes. The company has consistently underperformed competitors despite favorable conditions in the gold market. While gold prices have experienced significant appreciation, Barrick has failed to capitalize fully due to escalating operational costs, the seizure of one of its mines in Mali, and an unexpected CEO transition that occurred in September.

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

Institutional investors have increasingly advocated for separating the geopolitically stable Nevada assets from the corporation's more speculative international ventures. Market analysts note that an independent Nevada-focused mining company would rank among the world's largest publicly traded gold producers, potentially unlocking substantial shareholder value.

Elliott Investment Management has developed particular expertise in advocating for corporate separations, suggesting the fund will likely intensify pressure on Barrick's management to transform these structural proposals into concrete action.

Market Response and Future Outlook

Investors responded favorably to these developments, with Barrick shares advancing 3.4 percent on November 18. Additional positive momentum came from news that the company secured an option to acquire a 75 percent stake in the Lewis gold project located in Québec, signaling Barrick's continued strategic shift toward more politically stable jurisdictions.

Financial analysts predominantly maintain "buy" recommendations for Barrick stock. The critical uncertainty remains whether the restructured management team will implement these proposed changes effectively. Interim CEO Hill has committed to providing greater clarity regarding the company's strategic direction during the upcoming year-end financial reporting.

The foundation for transformation has been established—now Barrick must demonstrate it can execute this ambitious restructuring plan.