Barrick is weighing whether to hold off on taking its North American gold assets public until next year, according to someone with knowledge of the discussions who asked not to be named because the plans are not public. Work on the offering continues, but the timeline and other details are still in flux. A company spokesperson declined to comment.
On the Aug. 10 earnings call, CEO Mark Hill told analysts the IPO was expected to be finished by the end of this year. If the listing goes ahead, Hill is slated to lead the North American business, with Sebastiaan Bock becoming CEO of Barrick's other operations. According to people with knowledge of the matter, Chairman John Thornton has been exploring a breakup of the North American business going back to at least 2024.
Goldman Sachs Group Inc. is advising Barrick, and the company has been engaging more banks to help prepare the potential IPO. Some of Barrick's largest investors have opposed Thornton's plan to separate and list the North American mines, and one has gone public in urging the former Goldman Sachs banker to step down as chairman.
Last month, Barrick agreed to give Newmont Corp. a stake in a key Nevada gold project in return for Newmont's support for the planned IPO. Barrick shares plunged following the announcement, with the stock falling because investors judged the deal's value to be underwhelming.
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In August, Barrick's U.S. stock rose 22% as investors piled into gold in reaction to U.S. government moves to contain debt-servicing costs. Activity by the Treasury in the bond market prompted a shift into gold amid concerns about deficits and a softening dollar. Despite that surge, the shares are about unchanged for the year, putting the company's value at $72 billion.
If you track gold or spinoffs, the timing here matters. A slip into next year would push back when you can judge a standalone North American gold business, and it is unfolding alongside a supportive gold backdrop, active bank engagement, and unusually vocal shareholders.
