The Globe and Mail reports in its Wednesday, Nov. 19, edition that Barrick Mining is making changes to enhance performance and expand operations in North America, following news that activist investor Elliott Investment Management has taken a stake in the miner. The Globe's Andrew Willis and Niall McGee write that a source says Elliott has taken a $1-billion interest in Barrick and is pressing its board to improve its share price with steps that include splitting Barrick into two companies. Under Elliott's plan, one of the post-split companies would own Barrick's lower-risk mines in the Americas and the other would hold higher-risk properties in Africa, the Middle East and Asia.
The Financial Times first reported on Elliott's campaign early Tuesday. Last week, Reuters also reported Barrick's board is considering splitting up the company.
Elliott is now one of the 10 largest shareholders in Barrick. Analysts applauded the concept of restructuring Barrick after years of the miner's stock price underperforming that of peers. After the Elliott investment was publicized on Tuesday, Barrick interim chief executive officer Mark Hill sent a memo to staff announcing a restructuring of the company's core operating divisions.
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