Barrick Mining Corporation is currently navigating a period of significant strategic change, drawing varied reactions from leading financial analysts. On one hand, UBS has adjusted its outlook by lowering Barrick's price target from $59 to $55, yet still maintaining a 'Buy' recommendation. This cautious revision reflects an evaluation of the company's near-term prospects while acknowledging its fundamental value.
Conversely, CIBC has expressed a notably more bullish perspective on Barrick, substantially increasing its price target from $50 to $71 and reaffirming an 'Outperformer' rating. This optimistic shift by CIBC is primarily driven by revised, higher forecasts for gold prices, projecting $6,000 per ounce by 2026 and $6,500 by 2027, along with an upward adjustment for copper. The firm anticipates that the demand drivers observed in 2025 will extend into 2026, despite increasing geopolitical uncertainties. Adding to this strategic pivot, Barrick has revealed intentions to spin off its key North American gold assets via an initial public offering (IPO), with a target date of late 2026. This move, which includes selling a minority stake of 10% to 15% in the new entity, represents a major strategic overhaul aiming to revitalize the company after facing production declines and leadership instability, including the departure of former CEO Mark Bristow. The assets to be divested are expected to encompass joint ventures in Nevada, such as the Fourmile discovery, and a mine in the Dominican Republic, while higher-risk operations in Africa and Pakistan will remain under the parent company's portfolio. This ambitious IPO is estimated to be valued at over $60 billion, signaling a bold step towards reshaping Barrick's market position and operational focus.
Amidst these significant financial maneuvers and strategic restructuring, Barrick's leadership is committed to enhancing shareholder value and securing a resilient future. The company's proactive steps to streamline its portfolio and capitalize on favorable market conditions for precious metals demonstrate a forward-thinking approach. Investors are encouraged to consider the long-term potential embedded in these transformative changes, which aim to foster sustained growth and stability in a dynamic global economy.