Barrick eyes North America assets IPO, confirms CEO

Barrick Mining (TSX: ABX; NYSE: B) unveiled plans to spin off its North American gold assets into a new publicly listed company by the end of the year as it appointed interim CEO Mark Hill as permanent head.

Carving out the assets – which include stakes in the Nevada Gold Mines joint venture, Pueblo Viejo in the Dominican Republic and Nevada’s Fourmile project – in an initial public offering (IPO) is the best way to maximize shareholder value, Barrick said Thursday in a statement. Barrick plans to keep a “significant” majority stake in the properties, which account for more than half of the company’s gold production.

The proposed IPO was one of several scenarios floated by analysts in recent months as a way for Barrick to revive its lagging share price following years of cost overruns and profit-target misses. Share price performance and a personality clash with chairman John Thornton were two key factors that led to the departure in September of longtime Barrick CEO Mark Bristow, analysts have said. 

Barrick’s North American assets “are likely to be an acquisition target and logical fit for Newmont” (TSX: NGT; NYSE: NEM), National Bank Financial mining analyst Shane Nagle said Thursday in a note.

Risk exposure

Provisionally dubbed “NewCo,” the North American miner “could reasonably trade towards the upper end of sector valuation, given its premier jurisdiction exposure and asset quality,” RBC Dominion Securities mining analyst Josh Wolfson said Thursday in a note. “Historically, Barrick shares have traded at a substantial discount to the sum-of-its-parts valuation, in part due to above-average geopolitical risk exposure.”

The IPO is still subject to market conditions, regulatory approval and final board approval, Barrick stressed.

The spinoff “could represent a catalyst for shares, if the plan advances as outlined by late 2026,” Wolfson added. “However, we see various key questions outstanding.”

Those include what minority stake of the North American assets Barrick will issue into NewCo, how the IPO assets will be managed and how Barrick plans to use proceeds from the IPO.

Reko Diq review

Another major development Thursday is the news that Barrick has begun a full review of all aspects of its $7.7 billion Reko Diq copper-gold project in Pakistan because of security incidents.

Barrick made the announcements after reporting its best-ever quarterly results on the back of rising gold prices. Fourth-quarter net income more than doubled year-over-year to $2.4 billion (C$3.3 billion), or $1.43 per share, Barrick said. On an adjusted basis, earnings surged to $1.04 per share, beating analyst expectations.

Hill, who had been guiding the company since Bristow’s exit, will join Barrick’s board as a non-independent director, the company said as it praised “the strong performance of the business” under his leadership. A 20-year Barrick veteran, Hill previously oversaw operations in Latin America and the Asia Pacific region. He was “integral” in the initial decision to undertake exploration at Fourmile, Barrick said in September.

Fourmile holds 4.6 million indicated tonnes grading 17.59 grams gold per tonne for 2.6 million oz. of contained metal, Barrick said last year as it doubled the deposit’s estimated resource for a second straight year. It also contains 25 million inferred tonnes grading 16.9 grams gold for contained metal of 13 million ounces.

Ongoing prefeasibility studies at Fourmile point to the potential for significant additional resource growth, Barrick said Thursday.

Mali settlement

One of Hill’s key achievements during his interim stint was the resolution late last year of a long-running dispute with the government of Mali. The settlement secured a 10-year renewal of the exploitation permit and the release of detained employees in exchange for a $253 million payment and a commitment to distribute historical retained earnings by 2030.

Barrick had suspended operations at Loulo-Gounkoto, its largest African asset, early last year after Mali’s military government seized about three tonnes of gold over alleged unpaid taxes.

Toronto-based Barrick said Thursday it expects to produce between 2.9 million and 3.25 million oz. of gold this year, down from 3.26 million oz. in 2025. Total cash costs are expected to come in between $1,330 to $1,470 per oz., while all-in sustaining costs range from $1,760 per oz. to $1,950 per ounce.

Copper output, meanwhile, is projected to hit between 190,000 and 220,000 tonnes. Barrick produced 220,000 tonnes of the red metal last year.

“While 2026 guidance is softer than expected, our numbers were likely too optimistic on the ramp-up of Loulo-Gounkoto relative to consensus – accounting for much of the miss,” Nagle said in his note. He singled out the “strong” fourth-quarter results, capital return policy and “plans to surface value” from the North American business unit IPO.

Dividend raised

Barrick more than doubled its fourth-quarter dividend to 42¢ per share, including an increase in the base dividend to 17.5¢ per share. Barrick’s new dividend policy targets a total payout of 50% of annualized attributable free cash flow.

In Pakistan, Barrick is reviewing security arrangements at Reko Diq, the development timetable and the capital budget. An update will be provided when the review has been completed, Barrick said.

Barrick shares fell 6.6% to C$61.40 Thursday morning in Toronto, cutting the company’s market value to about C$103 billion ($75 billion). The stock has traded between C$23.68 and C$74 in the past year.