Barrick eyes IPO of North American gold assets

[Ben Graham]

Barrick Mining (TSX: ABX) (NYSE: B) is weighing an initial public offering (IPO) of its North American gold assets as the Canadian miner deals with rising costs and operational challenges.

The gold-copper miner’s board unanimously approved plans to explore a partial spinout that would take a minority stake public while Barrick keeps control.

The proposed unit would centre on the company’s interests in Nevada Gold Mines and Pueblo Viejo, along with its wholly owned Fourmile discovery in Nevada. Barrick said only a small minority interest would be listed.

Interim chief executive officer Mark Hill said an IPO could offer shareholders more flexibility by creating a pure gold vehicle focused on stable jurisdictions.

The move falls short of the full breakup some investors have pushed for. US activist investor Elliott Investment Management LP, which recently built a $1-billion stake in Barrick, has urged the company to separate its North American mines from higher risk operations in Africa and its large Reko Diq project in Pakistan.

Barrick shares rose after 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 lagged peers like Agnico Eagle Mines (TSX: AEM) over the past year amid investor concern about its exposure to jurisdictions including Pakistan, Mali, the Democratic Republic of Congo, Tanzania and Papua New Guinea, as well as copper assets in Africa and Saudi Arabia.

Rough year

Adding to its poor performance were the many issues Barrick faced this year, including a long-running dispute over its gold mine in Mali that forced a $1-billion write-off and the sudden exit of Mark Bristow as CEO.

A North American spinout would give investors exposure to the Toronto-based miner’s Nevada operations, the Pueblo Viejo mine in the Dominican Republic and the Fourmile project, also in Nevada. 

Barrick said it expects to evaluate the plan through early 2026, and Barrick will update the market on its progress at the company’s full year 2025 results in February next year.

Barrick weighs a North America-focused IPO to win back investors.