Barrick Gold weighs London listing for African assets in portfolio reshuffle
Options include a standalone London Stock Exchange listing, a merger with Endeavour Mining, or a holding company structure, as the firm seeks to unlock value in its $33 billion African portfolio.
Barrick Gold is considering a listing on the London Stock Exchange for its African business and a potential all-share transaction with Endeavour Mining, according to a research note from Jefferies. The Canadian gold major is exploring these options as part of a broader strategy to reshape its portfolio and sharpen its focus on North American operations.
Jefferies outlined several potential structures for the separation. These include a standalone London-listed African entity, a combination of Barrick’s African assets with Endeavour Mining to create a larger Africa-focused vehicle, or a holding company structure where Barrick retains stakes in both a North American-listed entity and a separate London-listed African vehicle. The bank noted that these paths are not mutually exclusive and may exist on a spectrum of possible outcomes.
The valuation of Barrick’s African assets is a key component of the strategic review. Jefferies estimates the combined net asset value (NAV) of the African operations at approximately $33 billion, representing around 30% of the company’s total NAV. This figure rises to roughly $35 billion if the Porgera mine is included, although Barrick’s chief executive has flagged Porgera as a potential sale candidate due to the company’s lack of majority ownership.
In contrast, Jefferies estimates that Barrick’s North American assets, including Nevada Gold Mines, Pueblo Viejo, and Fourmile, account for approximately 54% of the company’s NAV, valued at $58.6 billion on an unlevered basis. The bank views Barrick as a “special situation” and considers the stock undervalued relative to peers, arguing for a sum-of-the-parts valuation framework that accounts for embedded value often overlooked in the current market price.
Discussions are currently in the early stages, with no near-term announcement expected and no certainty of a transaction. Neither Barrick nor Endeavour Mining has commented on the reports. A standalone London listing would echo Barrick’s earlier Acacia structure, where African assets were separately listed in the UK before being reacquired, a move that would allow the market to independently value the African portfolio while preserving Barrick’s exposure.
