Barrick Gold Considers Major Corporate Split Amid Record Gold Prices

As gold prices continue to shatter records, surpassing $4,500 per ounce over the weekend, Barrick Gold is leveraging this historic market to potentially execute a profound strategic shift. The company’s leadership is conducting a thorough review of a plan to spin off its North American mining operations. This move raises a pivotal question: will the corporation’s recent operational success be followed by a complete structural transformation?

The surging price of gold has delivered a substantial financial boost to the mining giant. In its most recent quarter, Barrick generated approximately $2.4 billion in operating cash flow. Driven by high selling prices and a robust production output of 829,000 ounces of gold, free cash flow soared to a record $1.5 billion.

This liquidity surge is translating into direct benefits for shareholders. The company has raised its base quarterly dividend by 25 percent to $0.125 per share. An additional performance-linked special dividend of $0.05 brings the total quarterly distribution to $0.175. This underscores Barrick’s capacity to return capital to investors while simultaneously funding its growth initiatives.

The "NewCo" Spin-Off Strategy

At the heart of the current strategic review is a proposal to carve out Barrick’s most stable and prominent assets into a separate, publicly traded entity, internally referred to as “NewCo.” This new company would be comprised of the Nevada Gold Mines complex—a joint venture with Newmont—the Pueblo Viejo mine in the Dominican Republic, and the Fourmile project in Nevada.

Should investors sell immediately? Or is it worth buying Barrick?

The strategic rationale is clear: by creating a pure-play investment vehicle focused on politically secure regions, Barrick aims to achieve a higher market valuation. The examination of this initial public offering scenario is expected to continue into early 2026, with an official update scheduled for February.

Resolution of Geopolitical Tension

Alongside its financial strength, Barrick has managed to neutralize a significant risk factor. A protracted dispute with the government of Mali concerning the Loulo-Gounkoto complex has been resolved. The agreement includes the release of detained personnel and secures the ongoing operation of the mines. This development removes a geopolitical overhang that had weighed on the stock at times during 2024, allowing the market to refocus on the company’s fundamentals and the potential of the proposed separation.

Trading around $45.60, the market appears to be partially pricing in the anticipated value creation from the spin-off. The creation of a distinct North American entity caters to the safety preferences of many investors, while the remaining Barrick unit would retain the higher-risk assets in Africa. Looking ahead to 2026, two critical factors will now dictate the share price trajectory: the successful execution of the “NewCo” IPO and the sustainability of the current high gold price environment.