Barrick Gold plans $42B spin-off of North American assets
IPO of Nevada Gold Mines stake hinges on Newmont approval as Barrick looks to unlock shareholder value
Barrick Gold has unveiled plans to spin off its North American gold assets through an initial public offering, creating a separate entity valued at approximately $42 billion that would include the company's majority stake in the massive Nevada Gold Mines joint venture.
The Toronto-based miner's board has approved preparations for the IPO, which would encompass Barrick's 61.5% interest in Nevada Gold Mines, the Pueblo Viejo mine in the Dominican Republic, and the Fourmile development project in Nevada. Barrick intends to retain a controlling majority stake in the new North American company while offering a minority interest to public investors, according to the company's announcement.
The proposed spin-off represents one of the most significant corporate restructurings in the gold mining sector in recent years, potentially creating a pure-play North American gold producer that analysts say could unlock substantial hidden value. Barrick's strategic move comes as the company seeks to provide shareholders with "more optionality around jurisdiction" in what would be a focused gold-dedicated entity, according to industry analysis.
However, the successful execution of the ambitious plan hinges on approval from Newmont, Barrick's joint venture partner in Nevada Gold Mines. Newmont holds a 38.5% stake in what is widely considered one of the world's premier gold mining operations and possesses a first right of refusal on Barrick's stake, as reported by Mexico Business News. Any transfer of shares within the joint venture requires Newmont's formal consent.
The governance structure of the Nevada Gold Mines joint venture presents a significant hurdle. Regulatory filings and former Barrick executives confirm that Newmont holds contractual rights that could block or delay the proposed spin-off. Additionally, Barrick will require Newmont to contribute capital for the expansion of the Fourmile project, which is slated to be part of the new entity, according to Mining.com.
In October, Newmont's incoming chief executive Natasha Viljoen indicated that the company was awaiting further information from Barrick before committing additional capital for Fourmile, signaling potential friction between the mining giants as the spin-off process unfolds.
Analysts have responded positively to Barrick's strategic pivot, viewing the separation as a means to enhance shareholder value and create a more focused company. Some analysts suggest the newly created North American entity could emerge as an attractive acquisition target for Newmont itself, potentially creating a pathway for consolidation in the sector. The move follows a period of operational challenges in Nevada, where production has declined 23% and costs have risen 45% between 2020 and 2024, according to market analysis from late 2025.
Barrick is expected to provide a detailed outline of its restructuring plans during its fourth-quarter 2025 earnings report in February 2026, giving investors greater clarity on the timing and structure of the proposed IPO. The company's announcement comes as gold prices have experienced volatility, with Barrick shares trading near $51.48, giving the company a market capitalization of approximately $773 million, according to market data.
The separation would create a rare opportunity for investors to gain exposure to a pure-play North American gold producer with world-class assets, though the execution risks remain substantial given the complex joint venture governance and the need for Newmont's cooperation. Mining analysts note that the spin-off's success will depend largely on Barrick's ability to negotiate terms acceptable to Newmont while maintaining the operational synergies that have made Nevada Gold Mines one of the industry's most profitable operations.