(Kitco News) - Barrick Mining Corp.’s plan to spin out its North American gold assets into a separately listed company could unlock additional valuation upside, according to some analysts.
In its quarterly earnings report, the senior gold producer announced that its board has authorized management to begin preparations for an initial public offering of a new entity that would hold the company’s stakes in Nevada Gold Mines, Pueblo Viejo, and the Fourmile gold discovery in Nevada. Barrick plans to retain a controlling interest in the new company following the transaction.
Chief executive Mark Hill said the decision followed a detailed financial and operational review and is intended to maximize shareholder value while preserving operational discipline.
“As we progress towards an IPO of our North America business to maximize value, we remain steadfast in our focus on operational performance and improving safety,” Hill said, adding that Barrick remains committed to unlocking value across its broader asset portfolio.
Analysts at Jefferies said the board’s decision effectively gives the green light to the spinout and could result in a higher valuation for Barrick’s North American assets.
Jefferies said the proposed entity, referred to as “NewCo,” would house Barrick’s highest-quality North American gold assets, while allowing the parent company to maintain financial exposure through majority ownership. The firm added that Barrick has already begun aligning its regional structure in anticipation of the transaction, including the reclassification of Pueblo Viejo into the North America segment.
The analysts also noted that Barrick remains a “value stock” within the gold sector, even as it pursues structural changes aimed at highlighting asset value.
Barrick has indicated that additional details on the IPO’s structure, timing, and valuation will be provided in the coming months. Completion of the transaction remains subject to market conditions, regulatory approvals, and final board sign-off.
