Barrick Gold Pursues Strategic Restructuring with Planned Spinoff and Mine Divestment

The world's largest gold producer, Barrick Gold, is advancing a significant corporate overhaul. The company's strategy centers on concentrating its portfolio on top-tier assets while unlocking new value for shareholders, as evidenced by two major recent announcements.

In a move consistent with its focus on core, high-margin operations, Barrick has finalized the sale of its non-core Tongon gold mine in Côte d'Ivoire. The buyer, Atlantic Group, will pay up to $305 million. An initial payment of $192 million will be received immediately, with the remaining $113 million contingent on the gold price and resource development over a five-year period.

Proceeds from this transaction are expected to be redirected into Barrick's most promising growth projects, such as the expansion of the Lumwana Super Pit. This divestment underscores management's commitment to optimizing its global asset base.

A Landmark IPO for Premier North American Assets

Concurrently, Barrick's board has granted formal approval to explore a public listing for its flagship North American gold operations. The plan involves bundling three premier assets into a new entity, provisionally dubbed "NewCo." These assets include the Nevada Gold Mines joint venture, the Pueblo Viejo mine in the Dominican Republic, and the wholly-owned Fourmile gold deposit in Nevada.

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

Under the proposed structure, Barrick intends to retain a majority stake, offering only a minority interest to public investors. The rationale is that separating these lower-risk, high-margin operations from the broader global portfolio could enhance their visibility and valuation in the market. Specific details regarding the timeline and structure are scheduled to be unveiled alongside the company's annual financial results in February 2026.

Market Endorsement and Institutional Confidence

This strategic pivot is receiving positive feedback from the investment community. Analysts at BNP Paribas have upgraded their rating on Barrick from "Neutral" to "Outperform," citing the company's advantageous position to capitalize on the current record-setting gold market, where prices have appreciated approximately 60% this year. At prices around $4,200 per ounce, the company's operating margins see substantial expansion.

The value proposition has also attracted notable institutional interest. Gabelli Funds, a value-oriented investment firm, has established a new position comprising roughly 1.45 million shares, valued at approximately $30.1 million. This investment signals confidence in Barrick's valuation, particularly in light of the planned corporate restructuring.

A Clear Path Forward

The dual initiatives of the planned "NewCo" IPO and the Tongon mine sale illustrate a coherent strategic direction: shedding non-core assets, doubling down on the most profitable mines, and creating new avenues for financing and value recognition. The favorable market reaction suggests investors are aligning with this vision. All eyes will now be on February 2026 for the comprehensive blueprint of Barrick's refined corporate structure.