Barrick Gold Considers Major Restructuring Through North American Spin-Off

The strategic direction of Canadian mining giant Barrick Gold is poised for a significant shift. In response to mounting pressure from activist investor Elliott Investment Management, the company is evaluating a potential initial public offering (IPO) for its premium North American gold assets. This move could fundamentally reshape the world's second-largest gold producer.

A unanimous board vote on December 1, 2025, has authorized a formal review for listing a new subsidiary. This entity, tentatively referred to as "NewCo," would house Barrick's most valuable and politically stable operations. The portfolio under consideration includes:
* The 61.5% stake in the Nevada Gold Mines joint venture with Newmont Corporation.
* The Pueblo Viejo mine in the Dominican Republic.
* The promising Fourmile gold discovery, also located in Nevada.

Under the contemplated structure, Barrick would retain a controlling majority stake in the new company, offering only a minority share to public investors.

Addressing the Valuation Discount

A primary driver behind this strategic review is a persistent valuation gap. Despite Barrick's share price doubling over the last six months, it trades at approximately 0.9 times its net asset value (NAV). In contrast, pure-play North American peers like Agnico Eagle trade at a premium, around 1.5 times NAV. Market analysts attribute this discount to investor concerns over Barrick's exposure to geopolitically challenging jurisdictions, including Mali, the Democratic Republic of Congo, and Pakistan. A separation could allow the high-quality North American assets to be valued independently, more closely aligning with their operational profile and lower jurisdictional risk.

Leadership Transition Adds a Layer of Complexity

This strategic evaluation coincides with a recent change in the company's leadership. Barrick parted ways with CEO Mark Bristow in September 2025. The company is currently under the interim leadership of Mark Hill, who must simultaneously manage the search for a permanent CEO and oversee the complex IPO assessment.

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

The market's response to these developments has been largely favorable. Several financial institutions have upgraded their outlooks:
* BNP Paribas Exane raised its rating to "Outperform," setting a price target of 69.74 Canadian dollars.
* UBS increased its target to $47, maintaining a "Buy" recommendation.
* Bank of America also issued a "Buy" rating with a $48 price target.

Portfolio Optimization is Already Underway

The potential spin-off is part of a broader portfolio streamlining initiative. Barrick has been actively divesting non-core assets:
* In early December 2025, the company agreed to sell its Tongon gold mine in Côte d'Ivoire to Atlantic Group for up to $305 million.
* This follows earlier dispositions, including the Hemlo mine (for up to $1.09 billion) and its stake in the Donlin Gold project (for up to $1.1 billion).

Strong Operational Performance Provides Foundation

Barrick's operational strength provides a solid foundation for any restructuring. Third-quarter 2025 results were robust, featuring gold production of 829,000 ounces, an operating cash flow of $2.4 billion (an 82% increase from the previous quarter), and earnings per share of $0.58. Demonstrating confidence in its financial position, the company also raised its quarterly dividend to $0.175 per share.

Investors can expect a crucial update on the IPO review in February 2026, when Barrick releases its full-year financial results. The final decision will determine whether the diversified global miner transforms into a more focused North American gold producer.