Barrick Mining (TSX: ABX) is now at the center of what some investors are calling “the biggest deal in the history of gold mining,” as board-level discussions on splitting the company into two entities collide with Newmont’s (NYSE: NGT) reported focus on acquiring Barrick’s Americas portfolio.
The emerging thesis is straightforward and highly leveraged to a single geography: isolate a North America-heavy Barrick, anchored by Nevada and Fourmile.
Reuters reporting confirms that Barrick’s board has “raised the possibility” of splitting the company into two separate entities, one focused on North America and the other holding assets across Africa and Asia. Sources say discussions also contemplate outright sales of African operations and the Reko Diq copper-gold project in Pakistan once financing is secured, effectively unwinding much of the Randgold-era portfolio.
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Interim CEO Mark Hill has refused to be drawn in, telling reporters that Barrick does not comment on market speculation, while a company spokesperson has also declined to respond.
Following the initial Reuters wire, Barrick’s Toronto-listed shares closed up 3% on the session, a sharp single-day move for a senior producer. That jump comes on top of a 130% year-to-date rally in the stock, driven by record gold prices, even though Barrick has still only delivered a 52% total return over the last five years compared with Agnico Eagle Mines’ 142% gain over the same period.
A key operational flashpoint is Mali. Earlier this year Barrick lost control of its most profitable complex, Loulo-Gounkoto, after a dispute with the country’s military administration over a new mining tax code. That standoff led to the seizure of 3 metric tons of gold and triggered a $1 billion write-off.
Barrick currently carries an estimated market capitalization of about $62.6 billion, while Newmont’s valuation sits near $98.2 billion, placing their combined market value at roughly $160.8 billion if aggregated at today’s pricing.
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