Newmont Challenges Barrick’s Planned Spinoff Over Joint Venture Performance

In a move that could significantly disrupt its rival's corporate strategy, Newmont Corporation has publicly opposed Barrick Gold's intention to spin off its North American assets. The world's largest gold producer cited ongoing operational disappointments at their shared Nevada Gold Mines (NGM) joint venture as the core reason, insisting that performance must improve before any sale proceeds.

The clear and unusual public statement from Denver-based Newmont, issued on February 9, came in response to investor inquiries and media reports regarding Barrick's separation plans. Newmont expressed profound dissatisfaction with the management and value erosion at NGM, a partnership formed in 2019 after Barrick abandoned a hostile takeover attempt. The company emphasized that any transaction must fully adhere to the existing joint venture agreements, which include restrictions on the transfer of ownership interests. These contractual clauses could pose a substantial obstacle to Barrick's aim to sell a 10-15% stake in a new North American-focused entity later this year.

Key Operational and Financial Facts:
* Barrick holds a 61.5% controlling interest in Nevada Gold Mines, with Newmont owning 38.5%.
* Newmont has described a six-year trend of "declining performance and value destruction" within the venture.
* Analysts from Bloomberg and Mining.com estimate the value of the Barrick assets under consideration exceeds $60 billion.
* The potential spinoff package includes not only NGM but also the Fourmile development project and a mine in the Dominican Republic, which is also jointly operated with Newmont.

Should investors sell immediately? Or is it worth buying Newmont Mining?

Performance Concerns Take Center Stage

The critique is supported by tangible production figures. Barrick's gold output has declined for six consecutive years, reaching its lowest level in a quarter-century. Further reductions are projected for 2026, including within the Nevada operations. This track record forms the basis of Newmont's firm stance.

Market analysts recognize the high stakes involved. "Nevada is central to Newmont's portfolio. Both parties could unlock significant value through improved operational execution," noted Matthew Murphy, an analyst with BMO Capital Markets. Josh Wolfson of RBC Capital Markets highlighted the venture's immense importance, pointing out that Nevada Gold Mines alone accounts for approximately 60% of Barrick's total market valuation.

Upcoming Financials May Escalate Tensions

The next significant milestone in this corporate disagreement will be Newmont's earnings release on February 19, covering the fourth quarter and full year 2025. These results will likely demonstrate the seriousness of Newmont's concerns and indicate whether the company is prepared to intensify its opposition to Barrick's strategic move.