Barrick’s Overhaul Plan Hit by Newmont Legal Challenge
This has enabled a revised dividend policy targeting 50% of annual free cash flow.
SEATTLE (Scrap Monster): Barrick Mining is moving ahead with a major corporate restructuring plan, but legal tensions with Newmont could complicate its execution. The miner intends to spin off its North American gold assets into a new publicly listed entity, “NewCo,” by the end of 2026, aiming to unlock shareholder value through a more focused asset structure.
Despite the strategic shift, Barrick’s financial performance remains strong. In Q4 2025, the company reported record operating cash flow of $2.73 billion and free cash flow of $1.62 billion, supported by robust gold prices. This has enabled a revised dividend policy targeting 50% of annual free cash flow.
The proposed NewCo will include key assets such as Nevada Gold Mines, Pueblo Viejo, and the high-grade Fourmile project. However, rising costs remain a concern, with all-in sustaining costs projected to climb further in 2026.
A significant hurdle has emerged after Newmont issued a notice of default, alleging mismanagement and asserting rights over shared assets. The dispute could delay or derail the IPO, especially since Nevada Gold Mines forms the core of the planned spinoff.
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