Surging gold prices and operational performance from Barrick Mining Corp (TSE: ABX) (NYSE: B) (ETR: ABR0) have inspired an American hedge fund to become one of the precious metal major’s top shareholders. Within the past three months the stock has rallied up by ~45 per cent.
Last week, Elliott Investment Management L.P. took a US$700-million-dollar stake in the gold producer.
“The biggest surprise is that it didn’t happen sooner,” said Very Independent Research CEO John Tumazos.
Tumazos and Reuters have explained that Elliott was encouraged by a recent report indicating that Barrick is considering splitting into two entities to focus on its Nevada and international operations separately. The investment firm likely feels such a major restructuring would de-risk operations, enhance management focus and boost operational performance.
Barrick’s American unit would prioritize advancing the Fourmile gold project while maintaining Nevada Gold Mines operations with Newmont Corporation (TSE: NGT) (NYSE: NEM) (FRA: NMM). The international division would focus on Barrick’s mine sites in Africa, the Dominican Republic, South America, Papua New Guinea, Pakistan and Saudi Arabia.
Established in 1977, Elliott is one of the world’s largest and most influential hedge funds. It currently has assets under management in excess of US$76 billion and employs 622 people.
Despite Barrick’s considerable rally in 2025 amid record precious metal pricing, the company has not been free of challenges. Three employees lost their lives in Africa and Nevada this year, Chief Executive Officer Mark Bristow unexpectedly departed from his position last month and the company’s performance has been lagging in comparison to peers such as Newmont, Kinross Gold Corporation (TSE: K) (NYSE: KGC) and Agnico Eagle Mines Ltd (TSE: AEM) (NYSE: AEM) (FRA: AE9). This inferior execution has been largely linked to conflicts with Mali’s government since Jan. 1.
Thankfully for Barrick, recent concerns about the conflict with the African country’s government have finally been laid to rest after much difficulty.
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Resolution reached with Mali officials
On Monday, Barrick stated in a press release that it has resolved its disputes with Mali’s government that had been ongoing since 2023 when the nation raised taxes and revenue share expectations for mining companies operating within its borders.
This led to Barrick resisting to renegotiate contracts at its flagship Loulo-Gounkoto complex. Operations at the gold mine were suspended in January. Furthermore, Mali officials arrested four employees on the grounds of multiple financial violations and seized millions worth of gold bullion from the mine site.
They also issued an arrest warrant for Bristow that has now been abolished in adherence with the agreement. Barrick has viewed these actions as unjustified and politically motivated.
“All charges brought against Barrick, its affiliates and employees will be dropped and the legal steps for the release of the four detained Barrick employees will be undertaken,” the gold and copper mining company explained.
Mali’s Minister of Mines, Amadou Keita, said on state television Monday that Barrick has now agreed to adhere to the 2023 Mining Code.
“Additionally, the provisional administration [appointed by the Malian government] of the Loulo-Gounkoto complex will be terminated,” Barrick continued, “following which operational control over the complex will be handed back to Barrick.”
In exchange for the release of its personnel, Barrick will no longer be pursuing arbitration at the International Centre for Settlement of Investment Disputes. Stock surged by approximately 6 per cent Monday on the back of the news.
Mali is one of Africa’s leading gold producing nations. Barrick has been active in the country for approximately 30 years.
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