Barrick Gold has resolved a significant geopolitical hurdle with the government of Mali, securing a ten-year extension for its crucial Loulo-Gounkoto mining complex. This development removes a major overhang for the company, even as a fresh dispute emerges closer to home with its joint venture partner, Newmont Corporation, casting uncertainty over strategic plans in North America.
African Operations Stabilized with Long-Term Agreement
The Malian military government confirmed the mining license renewal late last week, concluding a two-year dispute that was initially settled in November 2025. The conflict stemmed from a 2023 mining law that proposed increased taxes and greater state participation. Under the finalized terms, Barrick will withdraw its case before the World Bank’s arbitration tribunal. In return, Mali will drop all legal proceedings against the company and fully restore operational control.
This agreement is fundamental for Barrick. Loulo-Gounkoto is an operational cornerstone, generating nearly $900 million in revenue in 2024 alone. A new feasibility study underscores the asset’s value, outlining reserves sufficient for six years of open-pit and 16 years of underground mining, solidifying its long-term production profile.
Should investors sell immediately? Or is it worth buying Barrick?
Partnership Dispute Threatens North American Strategy
While stability returns to West Africa, Barrick faces mounting pressure in Nevada. The company intends to list its North American gold assets in a separate initial public offering (IPO) by the end of 2026. However, this plan is meeting resistance from Newmont, which holds a 38.5% stake in the shared “Nevada Gold Mines” venture.
On February 9, Newmont publicly criticized the performance of the Barrick-managed operations, alleging a decline in performance and value destruction over the past six years. The partner now threatens to invoke protective clauses within the joint venture agreement, a move that could delay or potentially block the planned IPO. This conflict casts a shadow over Barrick’s otherwise robust fourth-quarter 2025 results, which featured a 65% surge in revenue to $6 billion and a more than doubling of its dividend.
Investor Outlook: Solid Foundation with a Key Hurdle Ahead
Operationally, Barrick appears well-positioned following the Mali resolution and strong quarterly earnings, a sentiment reflected in a year-to-date share price gain of approximately 4.4%. Investor attention is now pivoting to the proposed spin-off of the North American division. Whether the late-2026 timeline remains feasible will largely depend on Barrick’s ability to promptly address Newmont’s concerns regarding the Nevada assets without triggering a legal escalation.
Ad
Barrick Stock: Buy or Sell?! New Barrick Analysis from February 17 delivers the answer:
The latest Barrick figures speak for themselves: Urgent action needed for Barrick investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from February 17.
Barrick: Buy or sell? Read more here...
