In a move that could reshape its corporate landscape, Barrick Gold is exploring a significant restructuring. The mining giant’s board has formally authorized management to proceed with plans for a potential initial public offering (IPO) involving its core North American assets. This strategic initiative, aimed at unlocking hidden value within the portfolio, triggered an immediate surge in trading volume as investors reassessed the company’s prospects.
Operational Cleanup and Strategic Focus
Alongside the potential separation, Barrick has been tidying up its operational portfolio. The company has resolved a protracted dispute concerning the Loulo-Gounkoto complex in Mali. While the settlement carries a cost of approximately $430 million, it secures control over an asset that generates about $1.5 billion in annual operational cash flow.
Furthermore, Barrick has divested its Tongon mine in Côte d’Ivoire. The sale to the Atlantic Group provides an immediate cash injection of $192 million, with the total transaction value potentially rising to $305 million depending on future gold prices. These actions, coupled with the restructuring news, contributed to robust trading activity, with shares closing at 40.53 USD.
The “NewCo” Proposition: Targeting a Premium Valuation
The proposed new entity, currently referred to internally as “NewCo,” would consolidate what Barrick considers its crown jewels. The planned portfolio includes its stake in Nevada Gold Mines, its interest in the Pueblo Viejo joint venture in the Dominican Republic, and the Fourmile project in Nevada.
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The underlying rationale is clear: pure-play North American producers often command higher valuation multiples from the market compared to globally diversified miners. Barrick intends to retain majority ownership of the new company to maintain operational control. Management now has until early 2026 to finalize the structure, with a detailed update expected in February 2026.
Analysts Maintain Bullish Stance
Leading financial analysts were quick to reaffirm their positive outlook on Barrick following the announcement and noting the company’s stabilized operational performance. The consensus points to substantial upside potential, with several firms reiterating buy recommendations:
- Stifel Nicolaus: Confirms a “Buy” rating with a price target of 65.00 CAD.
- UBS: Maintains a “Buy” recommendation, seeing the stock reaching 47.00 USD.
- Scotiabank: Reiterates its “Buy” rating with a target of 43.00 USD.
The overarching sentiment from institutional market participants is one of approval, viewing the combination of strategic restructuring and operational streamlining as a compelling development for the company’s future.
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