Barrick Considers IPO of North American Gold Assets Amid Rising Costs and Investor Pressure
Barrick Mining Weighs IPO of North American Gold Assets as Operational Challenges Mount
Barrick Mining (TSX: ABX; NYSE: GOLD) is considering an initial public offering (IPO) of its North American gold assets as the company confronts rising costs and a series of operational setbacks.
In a statement, the board said it has unanimously authorized management to explore the creation and listing of a new subsidiary that would house key North American operations.
Barrick would retain control of the proposed company, while listing only a small minority interest. The unit would be anchored by Barrick’s stakes in Nevada Gold Mines, Pueblo Viejo, and its wholly owned Fourmile discovery in Nevada.
Interim chief executive officer Mark Hill said an IPO could give shareholders more flexibility by creating a pure-play gold company focused exclusively on stable jurisdictions.
The plan stops short of the full corporate split advocated by some investors. US activist fund Elliott Investment Management, which has built a $1 billion stake in Barrick, has pressed the company to separate its North American mines from its higher-risk assets in Africa and from the massive Reko Diq copper-gold project in Pakistan.
Analysts at Jefferies noted that a standalone North American company would likely attract interest from major producers such as Newmont (NYSE, ASX: NEM) and Agnico Eagle (TSX, NYSE: AEM). Its smaller size and absence of non-core assets in higher-risk jurisdictions would make it far easier to acquire than Barrick itself. However, they added that Barrick would likely demand a substantial premium in any sale and is more likely to continue drilling at Fourmile to expand the resource before entertaining offers.
Barrick shares rose following the announcement—up 4.4% in New York pre-market trading at $43.15, and up 1.6% in Toronto at C$58.43. The miner has trailed competitors such as Agnico Eagle over the past year as investors focus on its exposure to risk-prone jurisdictions, including Pakistan, Mali, the Democratic Republic of Congo, Tanzania, and Papua New Guinea, in addition to its copper assets in Africa and Saudi Arabia.
A Difficult Year for Barrick
The company’s underperformance has been compounded by multiple challenges. These include a prolonged dispute over its Mali gold operations that resulted in a $1 billion write-off, as well as the abrupt departure of former CEO Mark Bristow.
Barrick said it expects to evaluate the IPO plan through early 2026 and will update the market on its progress when it reports full-year 2025 results in February next year.
