TORONTO: Canada’s Barrick Gold Corp. is exploring a dramatic overhaul, with its board contemplating a breakup into two distinct companies—one anchored in stable North American operations and the other handling riskier assets in Africa and Asia—according to four sources close to the matter. This potential demerger could unwind key elements of the 2019 merger with Randgold Resources, jettisoning high-volatility holdings acquired under former CEO Mark Bristow.
The strategy gained traction following interim CEO Mark Bristow’s recent pivot toward North American priorities, spotlighting the lucrative Nevada Gold Mines joint venture with Newmont Corp. and the promising Fourmile project, slated for test production in 2029. Sources indicate the split aims to unlock undervalued assets, shielding them from geopolitical headwinds that have plagued Barrick’s international portfolio. Investors, frustrated by the stock’s 52% five-year gain lagging peers like Agnico Eagle’s 142%, have long advocated for such a divide to capitalize on gold’s historic rally.
Complicating the picture: Potential outright sales of African mines and Pakistan’s Reko Diq copper-gold project, once financing is locked in. In Mali, Barrick seeks to settle a bitter dispute with the military junta—triggering a $1 billion write-down and employee detentions—before offloading Loulo-Gounkoto, its former crown jewel. Other assets in the Democratic Republic of Congo, Tanzania, Papua New Guinea, and the Dominican Republic could follow suit.
Barrick’s shares surged 3% on the Toronto Stock Exchange Friday, closing at C$25.45, buoyed by Jefferies’ ratings upgrade post-Hill’s comments. “There’s immense value in Nevada alone,” noted an anonymous investor, estimating it could rival top global gold firms if standalone. While Bristow dismissed speculation Monday, ongoing deliberations signal a shareholder-responsive era. As gold hovers near $2,700/oz, this restructuring could redefine Barrick’s 130% YTD surge, prioritizing resilience over sprawl in a volatile world.