Struggling with valuation? Barrick Mining (B.US) considers splitting into two, focusing on North American and Asian-African markets.

According to four informed sources, the board of directors of Barrick Mining (B.US) has discussed the possibility of splitting the company into two independent entities. Under the plan, one entity would focus on the North American market, while the other would be responsible for African and Asian operations. The sources also added that the split plan could also include the direct sale of Barrick's African assets, as well as the Reko Diq copper-gold mine in Pakistan - provided that the mine can secure financing. In Mali, sources say Barrick is seeking to resolve a dispute with the country's military government before selling local assets. A Barrick spokesperson did not immediately respond to requests for comment. Interim CEO Mark Hill, when asked about the possible split on Monday, stated that the company does not comment on market speculation. The sources emphasized that the negotiations are still ongoing and there is no final decision yet. If the split plan goes ahead, it would essentially reverse Barrick's 2019 merger with Randgold and divest the assets introduced by former CEO Mark Bristow. One source mentioned that focusing on North American operations (including the large undeveloped Fourmile gold mine in Nevada) would ensure that Barrick is not undervalued in the face of potential takeover bids. Experimental production at the Fourmile mine is not expected to start until 2029. Hill had earlier stated that the company will shift its focus to North America, prompting analysts from Jefferies Financial Group Inc. and other institutions to raise their stock ratings. After the reports were released, Barrick's stock rose on the Toronto Stock Exchange on Friday, closing with a 3% increase. The company's U.S. stock also rose nearly 2%. Investors have repeatedly pointed out that Barrick's stock is undervalued and have called on the company to better utilize the historic rise in gold prices. Despite a 130% increase in Barrick's stock price this year, its five-year return rate is lower than its peers - with a 52% increase in its stock price compared to Agnico Eagle Mines Limited's 142% increase. An informed source revealed that investors had previously proposed splitting the company into two divisions: one holding stable assets such as the Nevada mines and the Fourmile mine, and the other containing higher-risk assets in Africa, Papua New Guinea, and the Reko Diq mine. Investors stated that as one of the few gold mining companies with assets spanning multiple continents, Barrick faces the greatest risk from mines in politically unstable regions. Earlier this year, Barrick lost control of its most profitable mine in Mali, the Loulo-Gounkoto mine, resulting in a $1 billion asset write-down. Due to a dispute over the country's new mining tax law, authorities seized 3 tons of gold and appointed a temporary manager to take over the mine. Currently, four Barrick employees are still being detained by the Malian authorities. "The market has always believed that the assets in Nevada hold enormous value," a Barrick investor said. The investor added that if the mine were to be listed independently, it would become one of the largest gold miners in the world by market capitalization. The investor also mentioned that Barrick has always been opposed to splitting because if the Nevada assets were separated, the value of other mines would be diminished. Currently, the mine is operated in collaboration with Newmont Mining (NEM.US). In addition to assets in Nevada and Mali, Barrick's other operating facilities include copper mines in the Democratic Republic of the Congo, gold mines in Tanzania, the Dominican Republic, and Papua New Guinea.