Barrick Advances New York Listing of North American Gold Assets, Targets IPO Completion This Year

Barrick Mining Corporation (B.US) announced on Tuesday that it is progressing with the listing of its North American gold assets in New York, reaffirming its expectation to complete the initial public offering (IPO) by the end of this year. The world's third-largest gold producer is preparing for the IPO of its North American operations as part of a strategic realignment of its business. This move follows a series of operational setbacks and management changes, including the sudden departure of CEO Mark Bristow last September. The planned spin-off of the North American business could be valued at over $60 billion. After years of declining production, the spin-off would allow the company to separate its high-quality North American assets from operations in higher-risk regions such as Mali and Pakistan. Barrick stated that the North American business will have its primary listing in New York, with a secondary listing in Toronto. Barrick will retain majority ownership. The company also announced the executive leadership team for the North American operations, including Chief Operating Officer Tim Cribb and Chief Financial Officer Wessel Hamman. This organizational restructuring is the latest step in Barrick's plan to spin off its North American assets. The company intends to sell between 10% and 15% of the North American business later this year. The spin-off will include Barrick's interests in joint ventures with Newmont Mining Corporation (NEM.US) in Nevada and the Dominican Republic, as well as the company's Fourmile project in Nevada. Barrick indicated that moving forward with the IPO does not require approval from Newmont Mining but added that discussions are ongoing with its partner to jointly optimize the management of their joint venture operations in Nevada. Previous media reports suggested that Newmont has insisted on operational improvements being completed before any asset spin-off proceeds. Under the leadership of new CEO Mark Hill and Chairman John Thornton, the spin-off and listing plan remains a central component of Barrick's strategic transformation. In a shareholder letter earlier this month, Thornton mentioned that listing the North American business would be the first step in unlocking corporate value and rewarding investors. Thornton also stated that the company will seek acquisitions while reducing investments in higher-risk regions, marking a reversal of its strategy of aggressive expansion in Africa and Asia over the past decade. At the time of writing, shares of both Barrick and Newmont Mining were down more than 2% in pre-market trading. Year-to-date, Barrick's stock has fallen nearly 7%, while Newmont Mining's shares have risen over 16%.