Barrick Gold Considers Major Corporate Split as Shares Hit New Highs

Barrick Gold Corporation is making waves with a bold strategic pivot that has propelled its stock to fresh peaks. The mining giant, which saw a leadership change in September, is now evaluating a radical restructuring plan. At its core is a proposal to spin off its most valuable assets into a separate, publicly traded entity. This move has investors debating whether it will ignite the next phase of growth or signal a valuation peak for the current structure.

The market's initial reaction has been decisively positive. Barrick's stock surged to a new 52-week high of €36.85, cementing a powerful upward trend that has more than doubled its value since the start of the year. This rally comes directly on the heels of the board's unanimous approval to explore the separation.

The plan under review involves carving out the company's North American operations into a new listed company, referred to internally as "NewCo." Crucially, Barrick would retain operational control by only floating a minority stake in this new entity, allowing current shareholders to gain exposure to a more focused investment while the parent maintains oversight.

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

A Strategic Reorientation

This potential spin-off represents a significant departure from the previous corporate strategy led by former CEO Mark Bristow. Under the guidance of Interim CEO Mark Hill, Barrick is responding to shareholder preferences for a simplified portfolio concentrated in geopolitically stable regions. The initiative aims to unlock hidden value and narrow the valuation gap with its peers by distancing the company from the perceived risks associated with its global assets, particularly those in Africa.

The crown jewels slated for inclusion in NewCo are Barrick's premier assets: its massive Nevada joint-venture mines, the Pueblo Viejo project in the Dominican Republic, and the highly promising "Fourmile" gold discovery. The inclusion of Fourmile, considered one of the most significant gold finds of the century, is expected to command a premium valuation for the new standalone company.

The Path Forward

The strategic review is anticipated to continue into early 2026, with an update expected in February. For investors, the central question remains whether this corporate unbundling will deliver the anticipated value creation. Currently, the market is pricing in an optimistic scenario, celebrating the potential for a sharper, more focused investment proposition from one of the world's leading gold producers.