Activist hedge fund Elliott Investment Management has built a significant stake in Barrick Mining Corp. (TSX: ABX，NYSE: B), people familiar with the matter said, as the world’s second-largest gold miner considers a potential breakup and internal restructuring to address years of underperformance and unlock value.
The Florida-based fund, which manages approximately $76 billion in assets, has accumulated a position large enough to place it among Barrick’s top ten shareholders, the Financial Times reported Tuesday. This move comes on the heels of a Reuters report last week revealing that Barrick’s board is actively considering a plan to split the company into two separate publicly-listed entities.
The proposed structure would see one company house Barrick’s “safer” and more stable assets in North America, while the other would hold its operations in “riskier” jurisdictions across Africa and Asia, according to sources cited by the publications.
Elliott is reportedly “encouraged” by the potential breakup, an idea that gained traction among analysts following the sudden departure of Chief Executive Mark Bristow in late September. A split would essentially unwind the 2019 merger with Randgold that formed the modern-day Barrick.
Investors have long argued that Barrick’s complex global structure has led to a conglomerate discount, with its share price failing to fully reflect a historic rally in gold prices. Despite a 135% surge in its New York-listed shares this year, its five-year return of 52% significantly lags behind the 142% gain of peer Agnico Eagle Mines Ltd.
The company’s significant exposure to politically volatile regions is seen as a key risk. Earlier this year, Barrick lost control of its lucrative Loulo-Gounkoto complex in Mali after a dispute with the country’s military administration, resulting in a $1 billion write-off. The incident involved the seizure of three metric tons of gold, and four Barrick employees remain incarcerated in the country.
“Without Nevada, there is not much of value in its other mines,” one investor, who asked not to be identified, told Reuters. They added that Barrick’s Nevada assets alone would be one of the world’s largest gold mining companies if spun off. Barrick operates these mines in a joint venture with rival Newmont Corp., which Bloomberg reported last month had previously mulled a deal to gain control of the prized assets.
Concurrently, Barrick is undergoing a significant internal overhaul. According to an internal memo seen by Bloomberg, interim CEO Mark Hill announced a reshuffle of its regional operating model, consolidating Latin American and Asia Pacific operations and bringing the Pueblo Viejo mine in the Dominican Republic into its North American portfolio.
The restructuring includes a slate of management changes: Tim Cribb becomes Chief Operating Officer for North America, replacing Christine Keener who has left the company; Wessel Hamman succeeds Kevin Annett as Chief Financial Officer for North America; and George Joannou joins the executive leadership team as Chief Development Officer.
In the memo, Hill described the company’s safety performance as “deeply concerning” and operational delivery as “inconsistent,” stating, “Whilst the fundamentals of our company are excellent, we cannot continue to operate in this way.”
A Barrick spokesperson did not immediately respond to requests for comment. Hill, asked on Monday about a possible split, said the company does not comment on speculation. Sources indicate that talks are ongoing and no final decisions have been made, leaving the future of the gold mining giant hanging in the balance.
