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Barrick Mining is considering a public listing of its North American gold mines, after a period of upheaval that included the abrupt departure of its former boss and the arrival of activist Elliott Management as an investor.
Toronto-based Barrick said it was exploring a separate listing of a small minority stake in assets that included mines in Nevada and the Dominican Republic, and accounted for just over half of its total gold production.
The potential move comes less than two weeks after the Financial Times reported that Elliott had built up a large stake in Barrick.
The $70bn miner has been working to reposition itself after a series of mis-steps, safety accidents and a share price underperformance despite bullion’s record-breaking rally this year.
Barrick, the world’s second-largest gold producer, has a primary listing in Toronto and a secondary listing in New York.
With sprawling mines that span from Papua New Guinea to Zambia to the Reko Diq mine in Pakistan, analysts say that Barrick’s geologically rich Nevada mines are being discounted by the market. The company’s shares trade at a significant discount to peers such as Agnico Eagle.
The company, which produces 53 per cent of its gold in North America, recently had a big discovery at the Four Mile project in Nevada. However, it has struggled to consistently meet production targets from its other Nevada mines, and recently appointed new leadership for its North American team.
After a period of upheaval prompted by the sudden departure of chief executive Mark Bristow in September, Barrick’s board, led by chair John Thornton, has been examining options for value creation, including breaking up the company.
Investors including Elliott are also understood to be supportive of restructuring.
Barrick said in a statement on Monday that it expected the new entity to be listed through an IPO of a “small minority interest” and that it would retain a significant controlling majority stake.
The assets that would be part of the new entity include its joint venture interests in Nevada Gold Mines and the Pueblo Viejo mine in the Dominican Republic — both of which it jointly owns with Denver-based rival Newmont.
Last week, Barrick reached a long-negotiated settlement with the government of Mali, paving the way to reopen its mine there and securing the release of four of its employees who spent months in jail.
The company also recently secured funding from the US Export-Import Bank, along with others, to help with the construction of the $9bn Reko Diq mine in Pakistan’s Balochistan province.