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Barrick Mining Corporation (NYSE:B), one of the world's largest gold producers, is allegedly weighing a potential breakup of the company. The split would create two companies — one centered on North America and another housing operations across Africa and Asia.
Reuters first reported on the rumor, citing four people familiar with internal board discussion. The media outlet noted that neither a Barrick spokesperson nor interim CEO Mark Hill would comment. The latter said that the company does not respond to market speculation.
According to these rumors, the initiative is in exploratory stages. Still, discussions have included the possibility of selling the company's African mines outright, as well as divesting the giant Reko Diq copper-gold project in Balochistan once financing is secured. The move would amount to a partial reversal of Barrick's 2019 merger with Randgold Resources, shedding assets accumulated under the leadership of former CEO Mark Bristow.
Also Read: Barrick Reports Record Cash Flow, CEO Search Underway
The North America-focused entity would be a central post-restructuring entity. Its portfolio would include Fourmile, an undeveloped but potentially high-grade gold discovery in Nevada slated for test production in 2029. Hill has already suggested a focus on this region.
Meanwhile, the future of key assets in other jurisdictions remains uncertain. The firm's position in Mali deteriorated after it lost control over the Loulo-Gounkoto complex. The governing military junta seized the complex, including three metric tons of gold, after a prolonged dispute over a revised tax code. With diplomatic efforts unsuccessful, the future of an asset that produced 723,000 ounces of gold in 2024 remains uncertain.
Meanwhile, the future of Reko Diq in Pakistan is also complex. Although it is one of the world's largest undeveloped copper-gold deposits, the project sits in a politically sensitive location.
The region of Balochistan has experienced decades of instability, separatism, and persistent questions regarding the federal-provincial alignment. Securing financing was already a delicate task. A potential corporate restructuring could add more layers of uncertainty.
Barrick's stock performance has been a catalyst for change. The shares have surged over 138% year-to-date, as record gold prices offset any headwinds. Yet, over the long term, the firm has underperformed its peers such as Newmont Corporation (NYSE:NEM) and Agnico Eagle Mines Limited (NYSE:AEM).
Thus, a potential split could help re-price the world-class North American assets immediately. Furthermore, it would shield the company from a possible takeover bid while the future leadership charts the best course for the company.
Price Action: B stock was trading lower by 0.03% to $37.05 premarket at last check Monday.
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