Barrick Gold’s Strategic Overhaul: Unlocking Value Through Portfolio Reshuffle

The Canadian mining behemoth Barrick Gold is undergoing a profound strategic transformation, a move that has ignited significant enthusiasm among investors. This comprehensive shift comes amid a surprise leadership change, with CEO Mark Bristow departing after seven years. His interim successor, Mark Hill, is now spearheading a historic corporate restructuring. The core strategy involves preparing its prized North American assets for a public listing while divesting higher-risk operations in Africa and Asia. Adding further momentum, the company faces pressure from activist investor Elliott Investment Management. The central question for the market is whether this path leads to a breakup of the giant or a substantial re-rating of its equity.

A key driver behind this strategic pivot is the presence of Elliott Investment Management, which has built a stake worth at least $700 million, placing it among Barrick's top ten shareholders. The activist firm is advocating for a clear separation of the company's stable, high-quality North American operations from its more politically challenging ventures in jurisdictions like Mali, the Democratic Republic of Congo, Papua New Guinea, and Pakistan.

Barrick is already executing a swift retreat from these complex regions. On December 2, the company finalized the sale of its Tongon gold mine in Côte d'Ivoire to the Atlantic Group for up to $305 million. The deal includes an immediate payment of $192 million, with an additional $113 million contingent on gold price movements and resource conversions. This transaction is part of an aggressive portfolio simplification. Earlier in June, Barrick divested its 50% stake in the Donlin Gold project for $1 billion, sold the Hemlo mine in Canada for up to $1.09 billion, and offloaded the Alturas project in Chile for $50 million.

The Crown Jewel IPO: "NewCo" Takes Center Stage

The most dramatic element of the overhaul is Barrick's plan for an initial public offering (IPO) of a new subsidiary, internally dubbed "NewCo." This entity would consolidate the company's premier North American gold business. Its portfolio would include Barrick's interest in Nevada Gold Mines—the world's largest gold complex—the highly profitable Pueblo Viejo mine in the Dominican Republic, and the promising Fourmile project in Nevada.

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

Barrick would retain majority control, floating only a minority stake. Interim CEO Hill has described these assets as "among the best in the world, located in some of the best gold mining jurisdictions." The company has already engaged Goldman Sachs and Klein and Company as advisors, with a potential listing in New York under consideration.

Operational Resilience Amidst Transition

Despite the ongoing leadership transition, portfolio upheaval, and geopolitical tensions in Mali, Barrick demonstrated robust operational performance in the third quarter of 2025. The company produced 829,000 ounces of gold, generating an operating cash flow of $2.4 billion—an 82% increase from the previous quarter—with a realized average gold price of $3,457 per ounce. Demonstrating confidence, Barrick raised its quarterly dividend by 25% to $0.125 per share and paid an additional performance dividend of $0.05. Furthermore, the company repurchased approximately 39.79 million of its own shares for $1 billion.

A critical market debate now centers on the ultimate fate of "NewCo." Some analysts speculate that the spun-off entity, packed with the industry's most coveted assets, could itself become an acquisition target. Strategists at the National Bank of Canada have outlined this very scenario, suggesting Barrick is effectively "packaging the assets the market is most excited about into a vehicle that will likely become a takeover target for rivals like Newmont."

Barrick is expected to provide an update on its IPO review in February 2026, ensuring market anticipation will remain high until then.