Dec 1 (Reuters) – Barrick Mining said on Monday it was exploring an initial public offering of a subsidiary that would hold its North American gold assets amid a record rally in bullion prices.
U.S.-listed shares of the Canadian miner rose nearly 4% in premarket trading.
A split would reverse Barrick’s 2019 merger with Randgold Resources, and comes as investors pressure the miner to use a historic rally in gold prices to boost returns, while shedding riskier assets in Africa, Papa New Guinea and Pakistan’s Reko Diq.
Gold prices have hit record highs this year on expectations of lower interest rates and its rising appeal as a safe-haven asset.
Reuters had reported in November Barrick was considering splitting into Africa- and North America-focused entities, citing sources.
The new entity, which is headed for the IPO, would comprise of Barrick’s joint venture interests in Nevada Gold Mines, and Pueblo Viejo in Dominican Republic, as well as the Fourmile gold discovery.
Barrick jointly owns Nevada Gold Mines, the world’s largest gold-producing complex, with rival Newmont and is also looking to develop the Fourmile gold mine in the U.S. state. Fourmile mine test production is not due to start until 2029.
The Canadian miner plans to offer a small minority interest, while retaining a significant controlling majority interest, it said.
The miner said it would provide an update on the IPO evaluation process in February.
“We are singularly focused on driving improved performance and shareholder value with the right teams now in place to deliver on our commitments,” said interim CEO Mark Hill.
Barrick has had a volatile year, marked by a long-drawn dispute over its gold mine in Mali, which led to a $1 billion write-off of the asset, and the sudden exit of Mark Bristow as its CEO.
Besides Nevada and Mali, Barrick’s working facilities include copper mines in the Democratic Republic of Congo, gold in Tanzania, the Dominican Republic, and Papua New Guinea.
(Reporting by Vallari Srivastava in Bengaluru; Editing by Leroy Leo and Shinjini Ganguli)
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