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Barrick Mining Evaluating IPO Of Its North American Gold Assets

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Deal Overview
Barrick Mining Corporation (NYSE: B, $40.91; Market Capitalization: ~$69.0 billion), one of the world’s largest gold and copper producers, has announced plans to evaluate an Initial Public Offering (IPO) of North American assets. The company will form a subsidiary that will house its highest-quality North American gold assets. The proposed entity (NewCo) will operate as a distinct, publicly traded vehicle anchored by Barrick’s 61.5% interest in the Nevada Gold Mines joint venture and its 60.0% stake in the Pueblo Viejo mine in the Dominican Republic. The portfolio will also include the company’s 100%-owned Fourmile project in Nevada, a high-grade discovery that management views as a key driver of future organic growth.

Barrick intends to retain a significant controlling majority in NewCo. The structure will allow Barrick to monetize the premium valuation commanded by North American assets while maintaining operational control and consolidating the financial results of these Tier One mines.

Following the transaction, the parent company (RemainCo) will continue to operate its diversified global portfolio, focusing on its copper growth engine, including the Reko Diq project in Pakistan and the Lumwana expansion in Zambia, as well as its cash-generative gold mines in Africa and the Middle East.

This move comes amid mounting pressure from activist investor Elliott Investment Management, which has built a $1.0 billion stake in Barrick and advocated for a outright separation of North American operations from higher-risk assets in Africa and Asia. While Elliott wanted a full breakup, Barrick’s move is designed to offer shareholders optionality around jurisdiction by creating a pure-play vehicle that provides exposure to stable, high-margin gold production without the geopolitical risk discount often applied to Barrick’s broader global footprint. The evaluation process is currently underway, with a formal update on the decision expected to accompany the company’s FY25 results in February 2026.
Barrick has involved M. Klein & Company and Goldman Sachs & Co. LLC as financial advisors, with Davies Ward Phillips & Vineberg LLP serving as legal counsel.

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Deal Rationale
Unlocking the value through jurisdictional arbitrage
The primary driver behind this strategic evaluation is the persistent valuation gap between Barrick Mining Corporation and its North American peers. Despite possessing a portfolio of world-class assets, Barrick currently trades at an EV/EBITDA multiple of approximately 7-8x, significantly lower than pure-play North American senior producers like Agnico Eagle, which often command multiples of 10-11x. By separating its US and Dominican Republic assets into a standalone entity, Barrick aims to capture valuation rerating. Investors currently apply a conglomerate discount to Barrick due to its exposure to higher-risk jurisdictions in Africa and the Middle East. By separating the stable North American business would allow NewCo to attract investors who prioritize minimal geopolitical risk.

Capitalizing on the attractive asset base
The asset quality of the proposed NewCo creates a compelling standalone investment preposition. The Nevada Gold Mines complex is already the single largest gold producing complex in the world, ensuring NewCo would launch with immediate scale and robust free cash flow. However, the inclusion of the wholly owned Fourmile project is the strategic differentiator. Fourmile is top-class asset developed by Barrick as it comes with high quality ore grades (12–16 g/t) with scale and exploration upside. Recent studies suggest Fourmile could produce 600,000–750,000 ounces annually over a 25+ year mine life, with all-in sustaining costs projected at $650–$750 per ounce, which is well below industry averages. Barrick’s current annual gold production is roughly 4.2–4.4 million ounces, so at peak output, Fourmile would contribute about 14–18% of Barrick’s total gold production, making it one of the most significant single asset contributors in the portfolio. Fourmile, estimated to be worth up to $10 billion, remains largely underappreciated within Barrick’s diversified global portfolio. By housing it within NewCo, Barrick will be able to highlight the high-grade growth opportunity, allowing the market to explicitly price its development potential.

Gold rally provides favourable backdrop for rerating
The sharp rally in gold prices, underpinned by macro uncertainty, persistent inflation, and robust central bank demand, has created an attractive backdrop for Barrick’s proposed North American IPO. Gold prices remain elevated driving margin expansion across tier-one assets and amplifying the valuation premium for operations in low-risk jurisdictions relative to Barrick’s global portfolio. By carving out a pure-play vehicle anchored in Nevada Gold Mines and Fourmile, Barrick seeks to capture heightened investor appetite for high quality, jurisdictionally secure gold exposure amid strengthening sector sentiment. Elevated pricing not only reinforces the intrinsic value of these assets but also increases the probability of achieving a premium valuation for NewCo, making this a strategically opportune window for monetization.

Optimizing the parent company for a Copper-focused future
For the remaining entity, this transaction represents a pivot toward a more aggressive growth narrative centered on copper and energy transition metals. With the North American gold assets ring-fenced, RemainCo becomes a clearer story of using cash flow from high-yield African gold mines (like Loulo- Gounkoto and Kibali) to fund massive copper developments like the Reko Diq project in Pakistan and the Lumwana Super Pit in Zambia. This bifurcation clarifies the investment proposition for both entities i.e NewCo offers stability, dividends, and safe-haven gold exposure, while RemainCo appeals to investors seeking higher leverage to the copper supply crunch and emerging market growth.
Financial flexibility and balance sheet efficiency
The IPO of a minority stake serves as an efficient capital-raising mechanism. Proceeds from the offering could be substantial, given that the North American assets generate the majority of Barrick’s operating cash flow. Nevada and Pueblo Viejo alone contributed over $2.8 billion in EBITDA during 9MFY25. This influx of capital would further strengthen Barrick’s already strong balance sheet, providing a boost to fund its capital-intensive copper projects or return capital to shareholders via buybacks, all without diluting the parent company’s equity holders.

Barrick Mining Corporation is a sector-leading enterprise, engaged in the production and sale of gold and copper, alongside related activities such as exploration and mine development. The company’s strategic vision focuses on owning Tier One assets, defined as assets with a reserve potential to deliver a minimum 10-year life, and annual production of at least 500,000 ounces of gold.

Barrick’s portfolio includes ownership interests in twelve producing gold mines and three producing copper mines located across Argentina, Canada, Chile, Côte d’Ivoire, the Democratic Republic of Congo (DRC), the Dominican Republic, Mali, Papua New Guinea, Saudi Arabia, Tanzania, the United States, and Zambia. Barrick classifies its business activities into three revenue-generating categories based on the primary metal produced and sold.

1. Gold Business: Barrick’s gold business segment is centered on mining and processing gold ore across its global portfolio, including six Tier One operations that deliver large-scale, low-cost and long-life production. The segment focuses on maximizing recovery and maintaining operational efficiency through processing facilities such as mills, autoclaves and heap leach plants. It generates most of the company’s revenue and cash flow, supported by robust reserve replacement through ongoing exploration. Gold remains the core driver of Barrick’s financial performance and long term value creation. The Gold segment accounted for approximately 91.5% of the company’s total revenue in FY24.

Assets: The company’s gold operations are geographically diverse. In North America, the cornerstone is the Nevada Gold Mines (NGM) joint venture (61.5% ownership), which includes the Carlin, Cortez, and Turquoise Ridge complexes. Other key North American assets include the Hemlo mine in Canada. In Latin America and Asia Pacific, major operations include the Pueblo Viejo mine (60.0% ownership) in the Dominican Republic, the Veladero mine (50.0% ownership) in Argentina, and the Porgera mine (24.5% ownership) in Papua New Guinea. In the Africa and Middle East region, Barrick operates the Loulo-Gounkoto complex in Mali (80.0% ownership), the Kibali mine in the DRC (45.0% ownership), and the North Mara and Bulyanhulu mines in Tanzania (84.0% ownership).

• Operational Performance: In 2024, the Gold segment produced 3.91 million ounces of attributable gold. The segment is supported by substantial mineral reserves, reporting 89.0 million ounces of proven and probable gold reserves as of year-end 2024.
• Strategic Focus: Barrick focuses on replacing reserve depletion through organic growth. Since the end of 2019, Barrick has added more than 180.0% of the gold reserves it depleted through mining operations. Future growth is anchored by projects such as the Goldrush underground mine in Nevada, which is ramping up to a targeted production of over 400,000 ounces per annum by 2028, and the expansion of Pueblo Viejo to extend its life beyond 2040.

2. Copper Business: Barrick’s copper segment is focused on producing and selling copper concentrate from its large-scale operations in Zambia, Saudi Arabia and Chile. The segment supports global electrification demand by supplying copper used in power infrastructure, renewable energy systems and electric vehicles. Alongside current production, it is advancing major growth projects such as Lumwana Super Pit Expansion and Reko Diq to significantly increase output and extend mine life. This business also contributes to diversification of earnings while providing long-term cash flow resilience beyond gold price cycles. The Copper segment contributed 6.6% of total revenue in FY24.
• Assets: Barrick’s producing copper assets include the Lumwana mine in Zambia (100.0% ownership), the Zaldívar mine in Chile (50.0% ownership), and the Jabal Sayid mine in Saudi Arabia (50.0% ownership).
• Operational Performance: In FY24, the Copper segment produced 195,000 tonnes of attributable copper. The segment experienced significant reserve growth in 2024, with attributable proven and probable copper reserves increasing by 224.0% YoY to 18.0 million tonnes.
• Growth Projects: The segment is poised for substantial expansion through two Tier One copper projects. The Reko Diq project in Pakistan is one of the largest undeveloped copper-gold deposits in the world, with first production targeted for 2028. Additionally, the Lumwana Super Pit Expansion in Zambia is projected to increase production to 240,000 tonnes of copper annually and extend the mine life to over 30 years.
3. Other Business: The Other segment accounted for approximately 1.9% of Barrick’s revenue in FY24. This category primarily captures incidental revenues derived from the sale of by-products extracted alongside the primary metals at Barrick’s gold and copper mines. While not a primary focus, the sale of these by-products provides supplementary revenue streams that contribute to lowering the overall net cost of production for the primary metals.

3Q25
Total revenues increased by 23.2% YoY to $4.1 billion. Gold sales grew 21.0% YoY to $3.7 billion, primarily driven by a 40.0% increase in the realized gold price to a record $3,457 per ounce, which offset a 12.0% decline in gold production to 829,000 ounces. The lower production volume was mainly attributed to the temporary suspension of Loulo-Gounkoto, though this was partially mitigated by increased ounces from Cortez driven by the ongoing ramp-up of Goldrush.
The Copper segment’s revenue increased 50.2% YoY to $320.0 million. This growth was driven by a 14.6% increase in copper production to 55,000 tonnes, led by higher grades and recoveries at Lumwana, combined with higher realized copper prices. Other sales increased by 37.9% YoY to $80.0 million.
EBITDA increased 56.5% YoY to $2.0 billion, and the corresponding margin expanded by 1,039 bps to 48.7%. This profitability growth was fuelled by higher realized metal prices and disciplined cost management. Adjusted net earnings increased 85.6% YoY to $982.0 million and the corresponding margin expanded by 797 bps to 23.7%. Adjusted net earnings per share was $0.58 (3Q24: $0.30).

FY24
Total revenues increased by 13.4% YoY to $12.9 billion. Gold sales grew 14.2% YoY to $11.8 billion, primarily driven by a 23.0% increase in the realized gold price to $2,397 per ounce, which offset a 3.5% decline in gold production to 3.91 million ounces. The lower production volume was mainly attributed to Nevada Gold Mines (Cortez and Carlin) due to mine sequencing and lower grades processed, though this was partially mitigated by increased ounces from Porgera following the ramp-up of operations.
The Copper segment’s revenues increased 7.5% YoY to $855.0 million. This growth was driven by a 2.1% increase in copper production to 195,000 tonnes, led by higher grades and recoveries at Lumwana, combined with an 7.8% increase in realized copper prices. Other sales decreased by 2.0% YoY to $247 million.

EBITDA increased 30.0% YoY to $5.2 billion, and the corresponding margin expanded by 514 bps to 40.1%, driven by higher realized metal prices. Adjusted net earnings increased 50.9% YoY to $2.2 billion and the corresponding margin expanded by 425 bps to 17.1%. Adjusted net earnings per share came in at $1.26 (FY23: $0.84).

Company Description
Barrick Mining Corporation (Parent)
Barrick is a global mining company focused on exploration, development, and production. It owns one of the largest portfolios of gold and copper assets, including six Tier One gold mines. The company operates in 18 countries across five continents and is the biggest gold producer in the United States. Barrick is headquartered in Toronto, Canada, and publicly traded on the New York Stock Exchange under the ticker B and the Toronto Stock Exchange under the ticker ABX.

North American Gold Assets (NewCo) (Carve-Out)
North American Gold Assets (NewCo) will emerge as a focused, publicly traded entity dedicated to gold production and exploration in premier mining jurisdictions. The company’s portfolio is anchored by major joint venture interests, including Nevada Gold Mines and Pueblo Viejo, coupled with the significant, wholly owned Fourmile gold discovery in Nevada.