Barrick Gold’s Strategic Overhaul Gains Momentum

The world’s second-largest gold producer is executing a profound strategic shift across two major fronts. Barrick Gold is advancing plans for a potential public listing of its premier North American assets while simultaneously concluding the divestiture of a key African mine. This dual-pronged approach aims to address what many perceive as a significant valuation gap currently weighing on the company’s shares.

Divestment and Focus: Tongon Mine Sale Finalized

In a move that underscores its refined strategy, Barrick has completed the sale of its Tongon mine in Côte d’Ivoire to the Atlantic Group. The total transaction value could reach $305 million. An initial payment of $192 million has already been received, with a potential further $113 million contingent on future gold prices and the successful development of additional resources over the next two and a half years.

This sale aligns with Barrick’s declared focus on maintaining a portfolio of long-life, high-margin operations. Having contributed over $2 billion to the Ivorian economy since production began in 2010, the Tongon mine is considered a mature asset. The company’s growth emphasis is now shifting elsewhere, notably to projects like the Fourmile discovery in Nevada.

Unlocking Value: The Planned North American Spin-Off

Concurrently, management has approved an exploration of a landmark corporate restructuring. The company is studying the creation of a new subsidiary housing its entire North American gold portfolio, with a partial initial public offering (IPO) to follow. Barrick would retain majority control of this new entity.

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

The portfolio under consideration includes the massive Nevada Gold Mines joint venture, the highly profitable Pueblo Viejo mine in the Dominican Republic, and the promising Fourmile project. The core rationale is valuation: gold producers with premium assets in North America typically command EBITDA multiples of 8x to 12x, with top-tier operations even reaching 15x to 18x. In contrast, African mining peers often trade at just 5x to 7x EBITDA. By separating the geographies, Barrick intends to eliminate the “conglomerate discount” it believes is applied to its current consolidated structure.

Market observers note this strategic review follows sustained pressure from activist investor Elliott Investment Management, which has pushed for actions to make the value of Barrick’s crown-jewel assets more transparent to the market.

Analyst Sentiment Remains Bullish

Financial institutions have responded favorably to the strategic direction. Stifel Nicolaus reaffirmed its “Buy” rating on Barrick stock, accompanied by a price target of 65 Canadian dollars. Other firms, including UBS (“Buy,” target $47 USD) and Scotiabank ($43 USD target), also maintain optimistic outlooks, forecasting further upside potential for the equity.

A key date for investors is now set for February 2026. At that time, alongside its full-year 2025 results, Barrick’s management has committed to providing concrete details on the proposed IPO structure. Speculation regarding the valuation of the potential new company is expected to influence share price movement in the interim, provided the execution remains on track. After hitting a 52-week high in early December, the stock is currently consolidating at elevated levels.