Barrick’s Planned Spinoff Faces Legal Challenge from Joint Venture Partner

A strategic move by Barrick Gold to unlock shareholder value has encountered a significant and potentially disruptive legal challenge. The mining giant’s announcement in December 2025 to pursue an initial public offering (IPO) for a selection of its North American gold assets is now under threat from its joint venture partner, Newmont Corporation.

Newmont Invokes Contractual Rights to Oppose Move

The conflict centers on Nevada Gold Mines, a joint venture where Barrick holds a 61.5% controlling stake. Newmont issued a sharply worded statement on Monday, directly criticizing Barrick’s spinoff strategy. The partner corporation alleges a “deterioration of performance and resulting asset value” over the past six years at their jointly operated mines in Nevada.

Newmont has indicated it may exercise protective clauses within the joint venture agreement to challenge or even block the separation. The company emphasized that any transaction must respect the contractual restrictions on transfer, casting considerable uncertainty over Barrick’s entire plan.

A Multi-Billion Dollar Valuation at Stake

The scale of the proposed IPO is substantial. Reports suggest the new entity, which would consolidate Barrick’s interests in Nevada Gold Mines, the Pueblo Viejo project in the Dominican Republic, and the Fourmile discovery, could be valued at more than $60 billion. Barrick’s stated intention is to sell only a minority stake of 10% to 15%, thereby retaining operational control.

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

Market observers from RBC Capital Markets speculate that this specific structure is a deliberate attempt by Barrick to circumvent clauses that would be triggered by a change of control. However, with the Nevada operations representing approximately 60% of Barrick’s total market value, Newmont’s opposition presents a major obstacle.

Operational Headwinds Compound Strategic Dispute

Newmont’s dissatisfaction touches on a sensitive operational trend for Barrick. The company reported declining gold production for a sixth consecutive year in 2025, with output falling to its lowest level in at least a quarter-century. Management has forecast further production decreases for the current year, 2026, including within the contested Nevada venture.

Despite these operational challenges, Barrick’s most recent quarterly results surpassed revenue expectations. Fourth-quarter earnings reached $6.00 billion, exceeding analyst forecasts of $5.16 billion. The mixed operational and financial picture has led to divergent analyst views; UBS slightly reduced its price target for Barrick shares, while Citi raised its target to $48 but maintained a neutral rating.

The future of the high-value spinoff now hinges on Barrick’s ability to resolve its partner’s contractual concerns. Until the dispute over the performance of the Nevada mines is settled, the anticipated value creation from the IPO remains in jeopardy.