Gold's rally has helped lift mining stocks. Yet Barrick Mining (B) believes some of its best mines may be worth more than investors realize. Its planned carve-out could help prove that point and give current shareholders a reason to buy before the new stock trades.
Barrick plans to list North American Barrick by year-end via an IPO. It will sell a small stake but keep control of the new firm. The assets include Nevada Gold Mines, Pueblo Viejo in the Dominican Republic, and the Fourmile project in Nevada. Together, they produced about 2 million ounces of gold for Barrick in 2025.
A $42 BILLION OPPORTUNITY
Analysts estimate the new business could be worth $42 billion. Selling a 10% to 15% stake at that price could raise $4.2 billion to $6.3 billion before fees. The final terms have not been set.
Barrick's own market value is about $67 billion. If its North American mines are worth $42 billion, that leaves roughly $25 billion for its other gold and copper assets. Investors may be assigning too little value to those operations, giving Barrick room to rise.
But the real prize is what Barrick keeps.
Today, investors must weigh its North American mines against its other global assets. Those mines face different costs and political risks. A separate stock could give the market a clear price for Barrick's top mines. If buyers value them more highly, Barrick's own shares could gain.
NEWMONT CLEARS THE WAY
A major hurdle fell in August when Barrick and Newmont (NEM) settled their Nevada mining dispute.
Newmont agreed to pay Barrick $1.95 billion and gave its consent to the IPO. The deal also adds new gold projects to their shared mining business. These include Barrick's Fourmile deposit and Newmont's Mike and Fiberline projects.
The deal clears a key roadblock to the IPO. It also adds room for future growth, though new mines take time and money to build.
WHAT INVESTORS SHOULD WATCH
An IPO price near or above $42 billion would support the bullish case. Strong demand for the shares could also help lift Barrick's value.
But a weak price or a delay would raise doubts. Higher mining costs and falling gold prices could hurt profits as well.
Barrick shareholders don't have to wait for the IPO to own a piece of these mines. They already do. The question is whether the market will soon pay more for them.
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byUnited States Gold Bureau