Barrick IPO Hurdles Mount as Nevada JV Comes Under Scrutiny

Barrick Gold is moving to spin off a portion of its North American gold operations through an initial public offering, but the plan is meeting resistance from its most important JV partner. Nevada Gold Mines, the joint venture with Newmont, is at the heart of the complication, raising concerns about operational performance and the valuation of the assets involved.

Newmont has leveled sharp criticisms at Nevada Gold Mines, arguing that the joint venture?s performance and asset value have deteriorated over the past six years. In a separate statement, Newmont urged Barrick to address these issues before any IPO discussion progresses further.

A particularly sensitive point for Newmont is the potential invocation of protective provisions within the joint-venture agreement. The contract includes rules that apply to transactions, including transfer restrictions. If Barrick fails to meet these contractual conditions, Newmont could make the deal harder to complete or, in an extreme scenario, block it outright.

Why the Nevada operation matters so much

Nevada Gold Mines is not a minor asset in Barrick?s portfolio. The JV was established in 2019, with Barrick owning 61.5% and Newmont 38.5%. RBC analyst Josh Wolfson notes that, in rough terms, Nevada Gold Mines accounts for about 60% of Barrick?s market value, making it the single most valuable component of the group.

This explains why Newmont scrutinizes any change in ownership or corporate structure so closely. It also helps explain why the proposed IPO is politically and economically sensitive: control and security of interests in Nevada directly influence the overall value attributed to Barrick?s transactions.

Key facts at a glance:
- Joint-venture ownership: Barrick 61.5%, Newmont 38.5%
- Barrick?s IPO plan (announced February 5, 2026): sale of 10% to 15%, with the majority remaining in Barrick hands
- Planned assets in the IPO package: Nevada interest, Fourmile development (100% Barrick), Pueblo Viejo (Dominican Republic)

IPO plans collide with production challenges

Barrick disclosed on February 5 its intention to prepare an IPO for its North American gold activities. However, Newmont, according to Bloomberg-sourced reports, believes its consent is required for such a move. Barrick could structure the offering to avoid a formal change of control, potentially sidestepping stringent pre-emptive rights.

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

At the same time, Barrick faces a separate operational issue: the company reported 2025 as the sixth consecutive year of falling gold production, hitting the lowest level in at least 25 years. For 2026, Barrick warned of further declines, including within the Nevada joint venture. This dynamic underscores the challenge of benefiting from high gold prices if the Nevada operations fail to perform as needed.

To reassure investors, Barrick has been turning to shareholder returns:
- Dividend: Q4 2025 dividend of $0.42 per share, up 140% versus the prior quarter.
- New dividend policy: aiming for a total payout equal to 50% of distributable free cash flow.
- Share buybacks: in 2025, about 51.90 million shares were repurchased for roughly $1.5 billion, equating to around 3% of outstanding shares.

Market sentiment has been uneasy. Over the last 30 days, Barrick?s shares were about 8.9% lower, with significant volatility evident in price swings.

The upshot for Barrick: operability before optics

The clearest takeaway is that Newmont wants tangible, measurable operational improvements at Nevada before any discussion of an IPO advances. The forthcoming move hinges less on the marketability of a listing and more on whether Barrick can stabilize and enhance Nevada?s performance without triggering disputes over contractual protections and consent rights embedded in the JV agreement. The next critical step is whether Barrick can deliver a steadier, improved Nevada operation and thus address the core concerns that could affect the feasibility and value of the proposed IPO.

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