Barrick Mining – USD 1.95 billion and a clear path to the IPO
On August 10, Barrick Mining settled all outstanding disputes with Newmont over their joint venture Nevada Gold Mines. Barrick’s Fourmile and Newmont’s Fiberline and Mike development projects will be transferred to the joint venture in return. Newmont will pay the group USD 1.95 billion. Newmont also agrees to the planned IPO of the North American gold assets, which Barrick is targeting by year-end. On an attributable basis, these assets accounted for around 2.0 million ounces of gold production in 2025. At the same time, both parties have modernised the joint venture’s rules. This removes a stumbling block.
The situation in Mali has also calmed down. Barrick has concluded a new collective bargaining agreement with the unions at the Loulo-Gounkoto mine, averting a strike planned for late September. The disputed issues included overtime pay and reimbursement of work-related expenses. According to Bloomberg, the agreement also covers employees of the caterer Food & Events Africa, and a union representative said other announced strikes have also been called off. Nevertheless, Mali remains a location where problems could arise again.
Year-end remains the target for the IPO. At a conference on September 29, however, management did not rule out the move slipping into January. The timetable remains uncertain. How the group is performing in its day-to-day business will become apparent on November 9, when Barrick presents its third-quarter figures. It should then become clearer how much momentum the business will carry into the planned restructuring. Barrick intends to float a minority stake while retaining a clear controlling majority, according to an earlier announcement.
DRC Gold – Option on Giro and Nizi as a springboard in the Congo
On September 1, DRC Gold entered into an option agreement for Giro Goldfields, replacing the previous term sheet. The company can initially acquire a 55% interest; Amani Consulting currently holds 65% and SOKIMO 35%. Payment will be made in shares. A total of 25 million shares have already been issued, with a further 325 million to follow no later than 12 months after the agreement date, subject to shareholder approval. If the transaction is completed, it could be a major breakthrough for the explorer. DRC Gold is led by Klaus Eckhof, who has been active in the DRC for more than 20 years and previously founded Moto Goldmines.
Giro lies in the Kilo Moto greenstone belt in northeast Congo, about 35 km west of the Kibali mine, in which Barrick holds a stake. The two concessions cover 497 km², and according to the company, the style of mineralisation is similar to that at Kibali. A historical estimate from 2020 puts the main Kebigada deposit in the Indicated category at 69.2 million tonnes grading 1.09 g/t gold, equivalent to 2,425,104 ounces. The estimate is not current, but indicates the scale. The second deposit, Douze Match, extends over 2.6 km and is up to 600 m wide, within a gold-in-soil anomaly measuring 6 by 2.5 km.
The package also includes Nizi, a concession covering 113 km² in the Ituri district. The King Leopold mine operated there intermittently for around 12 years, between 1913 and 1931, with apparently only two of seven known quartz veins mined. There is also the Baluma oxide prospect. Systematic modern exploration there remains largely outstanding, and the company sees potential for high-grade veins as well as large-tonnage, lower-grade systems. According to the company, drilling at Giro is to begin following completion of the acquisition. If shareholders approve, the way would be clear.
Kinross Gold – Fewer ounces, but plenty of money for shareholders
On October 28, Kinross Gold presented its third-quarter figures. Production was 424,693 gold equivalent ounces, compared with 503,862 in the previous year. The realised gold price rose to USD 4,249 per ounce from USD 3,460, while net income remained almost at the previous year’s level at USD 583.2 million. Adjusted earnings per share increased to USD 0.50 from USD 0.44. By contrast, attributable free cash flow fell to USD 281.3 million from USD 686.7 million, and all-in sustaining costs per ounce (AISC) rose to USD 1,947 from USD 1,622.
As early as September 23, the company had lowered its guidance for 2026 and 2027 to 1.84 to 1.86 million ounces per year because La Coipa and Round Mountain are delivering weaker output. Shareholders nevertheless stand to receive a substantial amount. The target for capital returns is rising from 40 to 50% of free cash flow, with USD 230 million spent on repurchasing 8.6 million shares in the third quarter. Cash stood at USD 2,638.4 million at the end of September, with no maturities before 2033.
Growth is expected to come from the pipeline. At Bald Mountain, Redbird 1 poured its first gold in early October, while Round Mountain Phase X is around 8% ahead of schedule at more than 9,600 m. Curlew in Washington is due to start production in 2028, with over 3,600 m of underground development ahead of schedule, according to the company. At Great Bear, over 500 m of the two ramps have been built, with management targeting first production for late 2029. However, the company expects capital expenditure there to be higher than in the initial study. Investors therefore need patience.
Conclusion
A high gold price benefits producers, but each company makes use of it differently. Barrick Mining has raised USD 1.95 billion through its settlement with Newmont and prepared the IPO of its North American assets. The timetable for this is now uncertain. DRC Gold has secured a position in the DRC through its option agreements for Giro and Nizi, and if shareholders approve, drilling could get underway. Kinross is producing less but returning more money to shareholders, targeting 50% free cash flow, while advancing Great Bear. All three have substance, but they are at different stages of development.
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