The board of directors for Barrick Mining has raised the possibility of splitting the company into two separate entities, one focused on North America and the other on Africa and Asia, according to Reuters sources.
A split could also include the outright sale of Barrick’s African assets as well as of the Reko Diq mine in Pakistan, once it has secured financing, the sources told the news agency. In Mali, Barrick is looking to resolve a dispute with the African nation’s military administration before selling the Loulo-Gounkoto complex.
The company’s focus on North America, including the Fourmile gold mine in Nevada, would ensure that Barrick does not get undervalued in case of a potential takeover offer, one of the sources said. Reuters noted that Fourmile mine test production is not due to start until 2029.
Investors had previously proposed that the company divide into one division with stable assets such as Nevada and Fourmile, and another with riskier assets in Africa, Papua New Guinea, and Reko Diq, according to one of the sources. However, the company has resisted splitting in the past because without Nevada, the source said, there is not much of value in its other mines.
Barrick runs the Nevada Gold Mines complex in partnership with Newmont Corp.
Source: Reuters