Barrick’s Overhaul Plan Hit by Newmont Legal Challenge
Mining News | 2026-03-18 10:17:35
This has enabled a revised dividend policy targeting 50% of annual free cash flow.
By Paul Ploumis
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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Will Barrick successfully complete its NewCo spin-off despite the dispute with Newmont?
Frequently Asked Questions
- What is Barrick’s restructuring plan?
Barrick aims to create a new publicly listed company (“NewCo”) by spinning off its North American gold assets.
- Which assets will be part of NewCo?
Key assets include Nevada Gold Mines, Pueblo Viejo, and the Fourmile project.
- How is Barrick performing financially?
The company reported strong Q4 2025 results, with record operating and free cash flow supported by favorable gold prices.
