Major Investor Backs Barrick as Strategic Overhaul Takes Shape

Shares of Barrick Gold have been on a remarkable upward trajectory this year, more than doubling in value since January. This surge is fueled by record-breaking gold prices, and the momentum is now being amplified by a significant vote of confidence from a prominent institutional investor. Concurrently, the company is laying the groundwork for a substantial strategic realignment.

The historic rally in gold, which recently traded around $4,223 per ounce, has provided a powerful tailwind for producers' margins. Barrick's latest financial results reflect this favorable environment:
* Revenue increased by over 23% to $4.19 billion.
* Earnings per share for the third quarter came in at $0.58, surpassing market expectations.
* Free cash flow surged to approximately $1.5 billion.

Despite this financial strength, the company faces operational challenges. Its guidance for 2025 forecasts a production decline to a range of 3.15 to 3.5 million ounces, accompanied by rising costs. The "All-In Sustaining Costs" (AISC) are projected to climb to as high as $1,560 per ounce. For now, investors appear to be overlooking these dampeners, likely focused on the company's robust liquidity, which supports potential share buybacks.

Oaktree Capital Leads Institutional Charge

The institutional sector is sending a clear signal of belief in Barrick's future. Data released this Friday reveals that Oaktree Capital Management LP has established a significant stake in the mining giant. The asset manager invested roughly $65.74 million to acquire more than 3.1 million shares.

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

Oaktree is not alone in this move. Other financial players have also been aggressively building their positions. For instance, Westwood Holdings Group substantially increased its holdings by 76% in the first quarter alone. Market observers interpret these capital inflows as an indication that institutional investors see further potential, even after the stock's impressive rally.

Strategic Pivot: A North American Spin-Off in the Works?

Beyond the financial inflows, Barrick's corporate strategy is generating significant market interest. The company is actively exploring an initial public offering (IPO) for its North American assets. This planned new entity, referred to internally as "NewCo," would consolidate premium projects including the Nevada Gold Mines, the Pueblo Viejo mine, and the Fourmile project.

Management's rationale is straightforward: by separating these top-tier, low-risk jurisdictions from operations in more geopolitically uncertain regions, the true value of these assets can be better realized for shareholders. The board of directors formally authorized the review of this strategic move earlier this week.

Technically, the share price, currently trading at 57.11 CAD and up over 150% year-to-date, is holding firmly above its key moving averages. Investors are now looking ahead to February 2026 as a critical date, when management has committed to providing concrete details and updates on the proposed separation of the North American division.