Barrick’s Planned Spinoff Faces Hurdle as Partner Newmont Raises Concerns

Barrick Gold’s strategy to carve out and publicly list its North American assets by late 2026 has encountered a significant obstacle. Its joint venture partner, Newmont Corporation, is reportedly insisting on operational improvements before supporting the move, potentially threatening the timeline for the initial public offering (IPO).

Strong Financials Amid Strategic Friction

The discussions around the potential spinoff follow Barrick’s robust 2025 full-year results, released on February 5. The company reported a record quarterly operating cash flow of $2.73 billion for the fourth quarter. Concurrently, management revised its dividend policy, now pegging the payout to 50% of free cash flow. This adjustment resulted in a declared quarterly dividend of $0.42 per share for Q4 2025. The company is also benefiting from a supportive gold price environment, with the metal trading near $5,000 per ounce despite recent volatility.

Nevada Joint Venture Emerges as Key Sticking Point

At the heart of the disagreement is the Nevada Gold Mines joint venture, owned 61.5% by Barrick and 38.5% by Newmont. Reports from Bloomberg News and BNN Bloomberg indicate that Newmont is pushing Barrick to address operational underperformance at the Nevada complex before proceeding with the separation and listing of the North American unit.

Newmont has pointed to a decline in the Nevada operation’s performance and value over the past six years. Crucially, the reports suggest that if its concerns are not resolved, Newmont may have the contractual right to block the inclusion of these Nevada assets within the new publicly traded entity. Barrick’s plan involves bundling its North American holdings—potentially valued at over $60 billion—into a separate company.

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

Market and Analyst Reaction

Despite the strategic friction, Barrick’s shares demonstrated resilience in recent trading. On the New York Stock Exchange, the stock closed at $46.63 on Monday, marking a daily gain of 3.26%.

Analysts have issued mixed responses:
– Citi raised its price target to $48.00 from $38.00 on Monday, while maintaining a “Neutral” rating.
– ATB Capital adjusted its outlook for the Canadian-listed shares (TSX: ABX), lowering its target to C$94.00 from C$100.00 but reiterating an “Outperform” recommendation.

The central strategic pillar of a late-2026 listing now hinges on whether Barrick can swiftly address the performance issues in Nevada to prepare the planned “NewCo” IPO without significant delay.