Here’s a bombshell that’s shaking up the mining world: Canada’s Barrick Mining is reportedly considering a dramatic split into two separate entities, one focused on North America and the other on Africa and Asia. But here’s where it gets controversial—this move could also involve the outright sale of its prized Reko Diq mine in Pakistan, a decision that’s sure to spark heated debates among investors and industry watchers alike. According to four insiders who spoke to Reuters, the plan is still in the works, but if it goes through, it would essentially undo the company’s 2019 merger with Randgold and shed assets tied to former CEO Mark Bristow. Is this a strategic retreat or a missed opportunity?
The proposed split comes at a time when Barrick is grappling with challenges in politically volatile regions, most notably in Mali, where a dispute with the military administration led to the loss of its most profitable mine, the Loulo-Gounkoto complex, and a staggering $1 billion write-off. Four Barrick employees remain detained, adding a human cost to the financial blow. Meanwhile, the company’s focus on North America, including the Fourmile gold mine in Nevada, is seen as a way to safeguard its value in the face of potential takeover bids. But this is the part most people miss—Fourmile isn’t set to begin test production until 2029, leaving Barrick in a precarious position in the near term.
Investors have long argued that Barrick’s shares are undervalued, especially compared to peers like Agnico Eagle, which has outperformed Barrick by a significant margin over the past five years. The idea of splitting the company isn’t new; shareholders have previously suggested dividing it into two divisions: one with stable assets like Nevada and Fourmile, and another with riskier holdings in Africa, Papua New Guinea, and Pakistan. But is this the right move, or is Barrick abandoning its global ambitions too soon?
The Nevada mine alone, if listed as a standalone company, would rank among the world’s largest gold mining firms by market capitalization, according to one investor. Yet, Barrick has historically resisted splitting, fearing that without Nevada, its other assets would lack sufficient value. The company operates the Nevada mine in partnership with Newmont Corp, and its global portfolio also includes copper mines in the Democratic Republic of Congo, gold operations in Tanzania, the Dominican Republic, and Papua New Guinea.
Interim CEO Mark Hill has remained tight-lipped, stating the company doesn’t comment on speculation. However, his recent remarks about shifting focus to North America prompted a ratings upgrade from analysts at Jefferies, and Barrick’s shares surged 3% on the Toronto Stock Exchange following the Reuters report. But as the company navigates this potential restructuring, one question looms large: Can Barrick strike the right balance between stability and growth, or will it pay the price for playing it safe?
What’s your take? Is Barrick making a smart strategic move, or is it leaving money on the table? Let us know in the comments—this is one debate you won’t want to miss!
