Barrick Gold Considers Major Corporate Split

Shares of Canadian mining giant Barrick Gold experienced a notable surge Friday, climbing 3 percent during the final trading hour following media reports suggesting the company might separate into two distinct publicly traded entities. This potential move raises significant questions about the future direction of one of the world's largest gold producers and what such a transformation would mean for its investor base.

A strategic pivot appears to be underway following a recent leadership transition. Mark Bristow, the CEO who engineered the 2019 merger with Randgold that significantly expanded Barrick's African footprint, departed unexpectedly in late September 2025. His successor, Mark Hill, clarified the company's new direction on Monday, emphasizing a renewed focus on core North American assets in Nevada and the Dominican Republic.

This strategic realignment follows operational challenges in certain regions. Earlier this year, Barrick lost control of its Loulo-Gounkoto mine in Mali due to conflicts with the military government. Such geopolitical uncertainties seem to have prompted the current management to reconsider the company's exposure to higher-risk jurisdictions.

Proposed Geographic Division

According to Reuters, Barrick's board is evaluating a geographical separation of the corporation's operations. The proposed structure would create one entity focused exclusively on North American assets, while a second would manage the company's portfolio across Africa and Asia.

The potential restructuring extends beyond a simple corporate division. Specific African mining operations are reportedly under consideration for complete divestment. Additionally, the massive Reko Diq copper-gold project in Pakistan could also be placed on the market.

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Addressing Market Valuation Concerns

This contemplated reorganization appears designed to tackle a persistent challenge: Barrick's shares have consistently traded at discounted valuations despite strong gold market conditions. While gold prices have achieved record highs in recent months, the company's stock performance has lagged behind industry competitors.

Market analysts suggest this valuation gap stems from the political risks associated with some of Barrick's operating regions. A geographical split would potentially allow investors to make more targeted investment decisions—choosing between the stability of North American operations or pursuing potentially higher returns from more volatile international markets. Such a move would effectively reverse the strategic premise behind the Randgold merger.

Awaiting Official Confirmation

Barrick has maintained official silence regarding these reports. Interim CEO Hill recently stated that the company does not comment on market speculation. Financial markets are now anticipating an official statement that could clarify the company's direction.

Should the separation proceed, it would represent one of the most significant corporate restructurings in the mining sector in recent years, though the ultimate impact on shareholder value remains uncertain. Investors will likely need to wait until the quarterly report in February 2026 for definitive information regarding these potential changes.