Barrick Gold shares fall 6% despite clearing IPO hurdle with Newmont deal

Published Aug 14, 07:00 PM UTC

Barrick Mining Corporation (NYSE:B) shares fell over 6% on Monday, even after the gold miner cleared a major obstacle to its planned North American IPO. Newmont Corporation consented to the transaction as part of an agreement resolving disputes over Nevada Gold Mines. Newmont will contribute its Mike and Fiberline developments, Barrick will contribute Fourmile, and Barrick will receive a $1.95 billion top-up payment within 30 days. The IPO remains targeted for completion by year-end. Despite the positive catalyst, investors focused on weak operating results: realized gold prices increased 34%, but production was flat, all-in sustaining costs rose 11%, and attributable free cash flow fell to $141 million. The bull case argues the agreement removes a major IPO obstacle, expands the Nevada gold complex to nearly 100 million ounces, and strengthens Barrick's balance sheet. Management plans a 10% minority offering and expects most net IPO proceeds to be returned to shareholders.