Barrick settles Newmont dispute, names CEO for $42B spinoff

Barrick Mining ↘ 6.41% said Monday it has reached an agreement with Newmont ↗ 3.79% over their Nevada joint venture, removing the largest obstacle to the Canadian gold producer's plan to list its North American assets in a public offering valued at roughly $42 billion.bloomberg+1

The company also named Mark Hill, its current president and CEO, as head of the planned spinoff entity, according to a statement released alongside its second-quarter earnings report. The deal comes despite mounting opposition from some of Barrick's largest shareholders, who have publicly challenged Chairman John Thornton's restructuring strategy.bloomberg

The Newmont Dispute

Nevada Gold Mines, the world's largest gold-producing complex, is a joint venture in which Barrick holds a 61.5% controlling stake and Newmont retains 38.5%. In February, Newmont issued a formal notice of default to Barrick, alleging mismanagement of the venture and citing declining output and rising costs. Newmont also holds consent rights under the joint venture agreement, giving it effective veto power over any IPO involving the Nevada assets.cryptobriefing+2

Bloomberg News reported in February that Newmont believed any IPO would require its approval. With Monday's truce, that hurdle appears resolved, though specific terms of the agreement were not immediately disclosed.finance.yahoo

Investor Backlash Persists

The resolution with Newmont does not settle Barrick's tensions with its own shareholders. Portfolio managers at Van Eck Associates, Barrick's fourth-largest shareholder, met at least three times with company executives this year to push back on the IPO plan. Mackenzie Financial and Franklin Equity Group have also expressed opposition.finance.yahoo

"If you ask me, it would be nice to have a graceful exit of this current chairman and have someone else come in," said Benoit Gervais, portfolio manager at Mackenzie, in an interview reported by Bloomberg. Investors argue the restructuring dilutes their interest in Barrick's most profitable operations by as much as 15%.finance.yahoo

What Comes Next

Barrick first floated the spinoff plan in December 2025, targeting a late-2026 listing of 10% to 15% of the new entity. The company has said it will retain majority control. Barrick is pushing ahead with the IPO despite investor resistance, and has not said whether the deal requires a shareholder vote.news.bloomberglaw+2

"It just gives me a headache," said Steve Land, a portfolio manager at Franklin Equity Group. "I imagine I'm not the only one."finance.yahoo