Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeCommoditiesMiningBarrick Clears Path for IPO After Resolving Newmont DisputeThe world's third largest gold producer named Mark Hill as CEO of its planned North American businessAuthor of the article:Last updated 58 minutes ago You can save this article by registering for free here. Or sign-in if you have an account.Barrick, the world’s third-largest gold producer, is pursuing an initial public offering for its North American assets. Photo by DAVID GRAY / AFP via Getty ImagesBarrick Mining Corp. said it has reached an agreement with Newmont Corp. on their Nevada joint venture, opening the way for the Canadian company to list its North American assets in New York.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorUnder the agreement announced Monday, Newmont will pay Barrick US$1.95 billion as the companies contribute previously excluded properties to the venture, including Barrick’s Fourmile project and Newmont’s Fiberline and Mike developments.Shares of Barrick fell as much as 6.9 per cent in pre-market trading in New York on Monday.The world’s third-largest gold producer is pursuing an initial public offering for its North American assets as it seeks a reset after a string of operational setbacks and a management shakeup that included September’s sudden departure of longtime chief Mark Bristow. Barrick has also lagged behind rivals Newmont and Agnico Eagle Mines Ltd. in failing to fully capitalize on gold’s record rally.Newmont wanted Barrick to address what it sees as underperformance at the Nevada assets before going ahead with the IPO, Bloomberg News reported in February. Earlier this year, Newmont sent Barrick a so-called notice of default after finding evidence of alleged mismanagement at the Nevada joint venture.Barrick has previously said the Fourmile discovery would be eventually be folded into the co-owned complex, though it hadn’t disclosed a firm timeline. The company called deposit “one of the century’s greatest gold discoveries” after releasing a preliminary assessment in September that showed it had potential for as much as 750,000 ounces of annual production.The deal value announced on Monday “looks looks a little too low given the quality of the asset, even if it clears a key obstacle to the North American IPO and resets relations with Newmont,” Bloomberg Intelligence analysts Grant Sporre and Emmanuel Munjeri wrote in a note on Monday. “The implied resource valuation of about US$325/oz arguably favors Newmont.”Investor consensus indicated a roughly US$10 billion to US$20 billion valuation for the asset, Citigroup analyst Alexander Hacking wrote in a Monday note. A payment from Newmont for its 38.5 per cent interest could be in the US$4 billion to US$8 billion range, although this would need to be offset for Newmont’s Mike and Fiberline contributions, he added.After resolving their differences, Barrick on Monday named Mark Hill as chief executive of its planned North American business. The company is pushing ahead with the IPO by the end of this year, despite pushback from top investors reluctant to dilute their exposure to Barrick’s most valuable assets.Chairman John Thornton says the IPO will allow investors to unlock the value of the North American assets. Still, the plan is facing backlash from some major shareholders including Van Eck Associates Corp, Mackenzie Financial Corp and Franklin Equity Group, Bloomberg News has reported.Barrick’s second-quarter adjusted per-share earnings of 82 cents US met the median estimate of analysts surveyed by Bloomberg. Gold output rose a higher-than-expected 11 per cent to 796,000 ounces during the period, compared to the first quarter. The company also reaffirmed earlier full-year output guidance of roughly 2.9 million to 3.25 million ounces, and 190,000 to 220,000 tons of copper.Still, lower operating cash flow and higher capital expenditures weighed on second-quarter free cash flow, which fell to US$515 million from US$1.58 billion in the previous quarter.Bloomberg.com Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.