Barrick Mining Corp. Chairman John Thornton faces direct investor opposition to his proposed spin-off of North American gold mines, challenging a strategy intended to unlock shareholder value.
Thornton, after a 12-year tenure as chairman, seized direct control from his long-time CEO last year and is driving a restructuring of Barrick's operational model. The core of that overhaul is an initial public offering for the company's gold assets in Nevada and the Dominican Republic.
Several major portfolio managers have voiced opposition to the plan. Van Eck Associates Corp. and Mackenzie Financial Corp. have contacted Barrick leadership to express their concerns, with Franklin Equity Group also aligned against the strategy.
These institutional investors resist the dilution of their interest in Barrick's most valuable assets. The proposed IPO structure would see Barrick maintain majority control of the new entity while floating a minority stake to the public.
Investor frustration has escalated to public calls for Thornton's resignation. Benoit Gervais, a portfolio manager at Mackenzie, Barrick's 10th-largest shareholder, said, "If you ask me, it would be nice to have a graceful exit of this current chairman and have someone else come in."
Barrick's leadership argues the IPO will unlock value by separating the high-quality North American mines from more troubled assets in Africa, Asia and the Middle East, allowing the Nevada and Dominican Republic operations to be valued independently.
Barrick's stock has underperformed key competitors, including Newmont Corp. and Agnico Eagle Mines Ltd. since Thornton took leadership in 2014—a period of sustained increases in gold prices.
The company's global production ranking has also slipped. Barrick fell to third place globally last year, behind Agnico. Production from the Nevada mines central to the proposed spin-off has declined in recent years.
The plan, first floated in December, still lacks key operational details. Barrick has not named a chief executive for the new company, nor has it disclosed the intended domicile for the listed entity.
Those unresolved issues and the investor backlash are expected to dominate shareholder discussion when Barrick reports quarterly earnings Monday.
Thornton declined to comment through an external spokeswoman.
