Barrick Gold Pursues Strategic Overhaul Amid Investor Pressure and African Resolution

Barrick Gold Corporation is embarking on a significant strategic pivot, marked by two major developments. The mining behemoth is exploring a public listing for its core North American operations while simultaneously resolving a protracted and costly dispute with the government of Mali. These moves come as activist investor Elliott Management exerts influence from the sidelines, with the overarching goal of narrowing the company's persistent valuation gap relative to its peers.

The company's strategic maneuvers are built upon a foundation of strong recent operational results. The latest quarterly figures demonstrate considerable financial health:

• Gold Output: Production reached 829,000 ounces in the third quarter.
• Cash Flow Generation: Operating cash flow surged by 82 percent to $2.4 billion.
• Free Cash Flow: A dramatic increase of 274 percent resulted in $1.5 billion in free cash flow.
• Shareholder Returns: The dividend was raised by 25 percent, supported by a new $1 billion share buyback program.

This robust performance provides the capital flexibility and credibility needed as the company navigates its strategic transition.

Board Greenlights Evaluation of North American Spin-Off

In a direct response to market dynamics, Barrick's board of directors has unanimously authorized management to assess an initial public offering (IPO) for a new subsidiary. This entity, tentatively referred to as "NewCo," would consolidate the company's premier gold assets in North America. The portfolio under consideration includes its joint venture interests in Nevada Gold Mines, the Pueblo Viejo operation in the Dominican Republic, and the wholly-owned, highly promising Fourmile gold discovery in Nevada.

Interim CEO and COO Mark Hill emphasized the exceptional quality of these assets, particularly highlighting the Fourmile project as one of the most significant gold discoveries this century—a potential game-changer for the new standalone entity. The current plan involves selling a minor non-controlling stake through the IPO, with Barrick retaining a firm majority ownership. An update on the evaluation's progress is anticipated for February 2026.

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

Activist Investor Influence Shapes Corporate Direction

This strategic review follows the substantial entry of Elliott Investment Management onto Barrick's shareholder register. The activist firm has built a stake worth approximately $1 billion and has been advocating for a separation of Barrick's stable North American operations from its higher-risk assets in regions like Africa and Asia.

The move to explore an IPO, rather than a full breakup, appears to be a calculated compromise. The valuation incentive is clear: Barrick currently trades at an EV/EBITDA multiple in the range of 7-8x. In contrast, pure-play North American producers such as Agnico Eagle command premiums, trading at multiples of 10-11x. A separate listing is designed to help capture this valuation differential for Barrick's top-tier assets.

Major Operational Risk in West Africa Resolved

Concurrently with its structural review, Barrick has neutralized a substantial operational threat in Mali. A judge in the West African nation has ordered the return of three tons of gold, seized by the military regime in January. The precious metal, valued at around $400 million, had been held in the capital city of Bamako.

The settlement, reached after two years of negotiations, involves a payment of $430 million by Barrick. In exchange, Mali will drop all international arbitration proceedings and will return control of the critical Loulo-Gounkoto mining complex next week. Furthermore, four Barrick employees detained since November 2024 have been released.

As Interim CEO Mark Hill guides the company through this period of transformation, the search for a permanent chief executive continues. Investors will be watching closely for the February 2026 update to see if the plans for a North American listing will proceed.