BARRICK Mining’s proposed IPO of its North American assets is facing opposition from several major shareholders, raising pressure on the Canadian group’s chair, John Thornton, Bloomberg reports.
The issue is likely to be a key focus when Barrick reports its latest quarterly results today (Monday). Investors will be looking for further details on the proposed IPO, including the leadership and domicile of the new company, which have yet to be announced, the newswire said.
Van Eck Associates, Mackenzie Financial and Franklin Equity Group have pushed back against the plan. Investors argue that selling a minority interest in Barrick’s highest-quality assets would dilute existing shareholders’ exposure by as much as 15%. A Mackenzie portfolio manager has also publicly called for Thornton to step down.
The proposed vehicle will hold Barrick’s Nevada operations, the Fourmile discovery and its Dominican Republic mine. Barrick and Newmont today agreed to vend in these assets into their jointly shared Nevada Gold Mines for $1.95bn.
The Nevada assets form part of the world’s largest gold-mining complex and contribute more than half of Barrick’s profits. Barrick would retain majority control after the IPO.
Thornton argues that a separate listing would allow the market to value Barrick’s North American portfolio more directly. However, some investors question whether monetising a stake in the company’s strongest assets addresses its underlying operational challenges.
The dispute follows a period of relative underperformance. Barrick has lost ground to Newmont and Agnico Eagle despite strong gold prices, while production has declined.
Former CEO Mark Bristow was removed last September after missing internal guidance for 14 consecutive quarters.
