NEW YORK — Barrick Mining (GOLD) shares fell Monday after the company announced a $1.95 billion cash agreement with Newmont (NEM) that resolves all outstanding disputes over their Nevada operations and moves Barrick closer to an initial public offering for its North American gold assets.
The settlement removes a key hurdle for the planned spin-off. Barrick aims to list its North American gold portfolio as a separate public entity while retaining majority control. Management said a separate listing would allow the market to value those assets more directly.
Chairman John Thornton has argued that isolating the North American portfolio gives investors a cleaner investment thesis, one focused on the operational strength and growth potential of those specific assets.
The stock's decline reflected more than the deal itself. Barrick's Q2 earnings report also missed analyst expectations, compounding pressure on shares.
Some investors remain skeptical of the IPO plan, questioning whether monetizing a stake in the North American assets through a separate listing is the right approach.
The Dow Jones Industrial Average was flat on the day.
