Barrick Mining (TSX:ABX) has reached an agreement with Newmont (NYSE:NEM) to expand their Nevada Gold Mines (NGM) joint venture, clearing a major hurdle for Barrick’s proposed public listing of its North American gold assets.
Under the agreement announced Monday, Barrick’s Fourmile project and Newmont’s Fiberline and Mike projects will be included in NGM after previously being excluded from the joint venture.
In return, Newmont has agreed to consent to Barrick’s proposed initial public offering (IPO) of its North American gold assets, which will comprise its interests in NGM and Fourmile, along with the Pueblo Viejo Mine in the Dominican Republic.
The agreement removes a significant obstacle to the proposed IPO, which had faced uncertainty because of Newmont’s interests in NGM. Bloomberg previously reported that Newmont wanted Barrick to address the management of its Nevada assets before proceeding with the listing.
The inclusion of Fourmile is also expected to bolster the value of the proposed spin-out. Barrick has described the project as “one of the century’s greatest gold discoveries”, with the potential to produce as much as 750,000 ounces of gold annually.
To reflect Fourmile’s contribution to the joint venture, Newmont will pay Barrick US$1.95 billion ($2.76 billion) within 30 days.
Analysts, however, viewed the payment as relatively modest given the perceived quality of Fourmile. Investor consensus had placed the project’s value at roughly US$10 billion to US$20 billion, according to Citigroup analyst Alexander Hacking.
The valuation “looks a little too low given the quality of the asset, even if it clears a key obstacle to the North American IPO and resets relations with Newmont,” Bloomberg Intelligence analysts said.
IPO plans
Barrick is targeting completion of the IPO by the end of 2026. The company first floated the plan in late 2025 as its new leadership sought to improve the business following years of underperformance relative to peers including Newmont.
The Canadian-based miner also confirmed Monday that President and CEO Mark Hill will lead the North American spin-out, ending months of speculation over the position.
The new entity, known internally as North American Barrick, is expected to have its primary listing in New York and has been valued by analysts at approximately US$42 billion.
The proposal has, however, faced opposition from some major Barrick shareholders, including Van Eck Associates, Mackenzie Financial, and Franklin Equity Group, according to Bloomberg.
Q2 2026 results
Separately, Barrick reported second-quarter adjusted earnings of US$0.82 per share on Monday. The result matched the median estimate of analysts surveyed by Bloomberg and the average estimate compiled by LSEG.
Gold production reached 796,000 ounces during the quarter, up 11% from the first quarter and above expectations.
Barrick also reaffirmed its full-year production guidance of approximately 2.9 million to 3.25 million ounces of gold and 190,000 to 220,000 tonnes of copper.
Barrick is a global mining, exploration and development company with a portfolio of long-life gold and copper assets.
Write to Jackson Chen at Mining.com.au
Image: Barrick Mining
