Barrick Gold Considers Major Corporate Restructuring

Barrick Gold Corporation, the world’s largest gold producer, is contemplating its most significant strategic shift in years. The mining giant is evaluating a potential corporate split that could fundamentally reshape the entire gold mining sector. With new CEO Mark Hill establishing clear strategic priorities, investors are questioning whether the company might transform into a purely North American-focused operation.

Market Performance Highlights Investor Concerns

Despite achieving a 130 percent stock appreciation since the beginning of the year and operating in an environment of record-high gold prices, Barrick has underperformed relative to its competitors. This performance gap has intensified investor pressure for strategic changes. The company’s five-year return of 52 percent significantly trails behind competitor Agnico Eagle, which delivered 142 percent growth over the same period.

Radical Restructuring Options Under Review

The company is reportedly considering several dramatic structural changes. One scenario involves dividing into two separate entities, with the profitable Nevada operations potentially being separated from the more politically risky African and Asian mining assets. An alternative approach under discussion involves the complete divestiture of Barrick’s African portfolio.

This potential strategic pivot represents a decisive departure from the vision of former CEO Mark Bristow, whose 2019 merger with Randgold Resources significantly expanded Barrick’s African footprint. The African expansion has yielded mixed results, highlighted by a recent conflict with Mali’s military government that forced temporary mine closures and necessitated billions in asset writedowns.

Should investors sell immediately? Or is it worth buying Barrick?

Strategic Reorientation Toward Stable Jurisdictions

Under interim CEO Hill’s leadership, Barrick appears to be shifting focus toward operational stability and lower-risk jurisdictions. The company is currently prioritizing expansion projects at the Pueblo Viejo mine in the Dominican Republic and the Fourmile development in Nevada. This strategic realignment sends a clear market message: Barrick intends to eliminate the “jurisdiction discount” typically applied to companies with significant exposure to politically volatile regions.

Technical Indicators and Market Context

The timing for such a strategic review appears favorable from a market perspective. Barrick’s shares are trading just below their 52-week peak and have more than doubled since their December 2024 low. Technical indicators suggest additional upside potential, with the Relative Strength Index reading of 28.4 indicating significantly oversold conditions.

However, the stock’s volatility of nearly 50 percent underscores ongoing market nervousness within the gold sector. While research analysts uniformly recommend purchasing Barrick shares, the board’s ultimate decision regarding the company’s future structure will likely determine the stock’s medium-term trajectory. The coming weeks may reveal whether the mining behemoth will transform into two more streamlined and agile competitors.