Barrick Gold Faces Potential Breakup Amid Activist Pressure

A significant shift may be underway for one of the world’s largest gold producers as activist investor Elliott Management builds a substantial position in Barrick Gold and advocates for dramatic structural changes. The hedge fund, known for pushing aggressive corporate overhauls, has acquired a stake exceeding $700 million, placing it among the company’s ten largest shareholders. This development coincides with board-level discussions about potentially splitting the mining giant into two separate publicly-traded entities.

Strategic Overhaul Under Consideration

Barrick Gold’s board is formally evaluating a radical restructuring plan that could see the corporation divided along geographical lines. One proposed entity would control the profitable North American operations, including the Nevada gold mines and the Fourmile development project. A second company would manage the portfolio of African and Asian assets. As an alternative approach, management is also considering the complete divestiture of African and Pakistani holdings.

This potential breakup represents a stark reversal of the expansion strategy pursued by former CEO Mark Bristow, who orchestrated Barrick’s major push into Africa through the 2019 acquisition of Randgold Resources. The timing of these deliberations follows Bristow’s unexpected departure in September, creating a leadership vacuum during a period of strategic uncertainty.

Investor Frustration Boils Over

The driving force behind these proposed changes stems from years of investor dissatisfaction with Barrick’s performance. Despite favorable gold market conditions, the company’s shares have consistently underperformed industry peers over the past five years. Market experts attribute this valuation gap primarily to geopolitical risks associated with international operations, recently highlighted by conflicts with Mali’s military government.

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

The company’s strategic direction appears to be already shifting toward safer jurisdictions. Earlier this week, a Barrick subsidiary secured an option to acquire up to 75% of the Lewis gold project in Quebec, Canada. This move aligns with statements from interim CEO Mark Hill emphasizing focused growth in U.S. and Dominican mining operations.

Unlocking Hidden Value

Market participants have responded enthusiastically to the prospect of corporate restructuring. Barrick’s U.S.-listed shares climbed 2.7% in premarket trading following the news. Financial analysts from Jefferies and other institutions have already upgraded their valuations, anticipating that a more focused corporate structure could significantly reduce risk exposure.

Industry observers note that Barrick’s Nevada operations alone, which accounted for 42% of the company’s gold production in 2024, could rank among the world’s most valuable gold producers if established as a standalone entity. The separation of assets, according to market strategists, could potentially reveal the company’s true worth by isolating high-performing operations from politically challenging regions.

The coming months will prove decisive for Barrick’s future direction. With Elliott Management applying pressure and the board openly considering transformative options, the corporation’s next quarterly report may signal the beginning of the most significant restructuring in the gold producer’s history.