TORONTO: The board of Barrick Gold Corporation is considering a breakup of the company into two separate entities, one focused on North America and the other on Africa and Asia, according to four sources familiar with the matter cited by Reuters.
The discussions include options for an outright sale of Barrick’s African operations and the Reko Diq copper-gold project in Pakistan once project financing is secured, the sources said. In Mali, Barrick is seeking to resolve an ongoing dispute with the country’s military administration before proceeding with any sale of assets there.
A company spokesperson did not respond to requests for comment. Interim CEO Mark Hill, when asked earlier in the week about a possible split, said Barrick does not comment on market speculation. The sources said talks are ongoing and no final decision has been made.
If implemented, the plan would effectively reverse Barrick’s 2019 merger with Randgold Resources and could see the company divest assets acquired under former CEO Mark Bristow. One source said a sharper focus on North American assets, including the undeveloped Fourmile mine in Nevada, is aimed at preventing Barrick from being undervalued in the event of a takeover bid.
Test production at Fourmile is expected to begin in 2029. Hill has already indicated that Barrick intends to shift its strategic focus toward North America, a move that prompted analysts at Jefferies and other firms to upgrade their ratings on the stock. Barrick shares rose 3% on the Toronto Stock Exchange on Friday following the Reuters report.
Investors have argued that Barrick remains undervalued despite a 130% rise in its share price this year. Over the past five years, the stock is up 52%, compared with a 142% gain for peer Agnico Eagle. Some shareholders previously proposed splitting the business into a division holding relatively stable assets, such as Nevada and Fourmile, and another containing higher-risk operations in Africa, Papua New Guinea, and Reko Diq.
Barrick’s diversified portfolio across multiple regions has also exposed it to political and regulatory risks. Earlier this year, the company lost control of its Loulo-Gounkoto mine complex in Mali after a dispute over a new mining tax code, resulting in the seizure of three metric tons of gold, the appointment of a provisional administrator, and a $1 billion write-off. Four Barrick employees remain in custody in Mali.
One investor told Reuters there is “a lot of value in Nevada,” and that a standalone Nevada-focused company would rank among the world’s largest gold miners by market capitalisation. Barrick has previously resisted splitting, with investors noting that, without Nevada, the remaining assets may struggle to command strong valuations.
Barrick operates the Nevada complex in partnership with Newmont Corporation. Beyond Nevada and Mali, the group’s portfolio includes copper assets in the Democratic Republic of Congo and gold operations in Tanzania, the Dominican Republic, and Papua New Guinea, in addition to its interest in the Reko Diq project in Pakistan.
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