Activist hedge fund Elliott Management has acquired a stake exceeding $700 million in Barrick Gold Corp. (TSX:ABX, NYSE:GOLD), making it one of the top 10 shareholders in the world’s second-largest gold producer, the Financial Times reported on Tuesday.
The move comes as Barrick struggles to fully capitalize on record-high gold prices driven by geopolitical tensions and inflation. Despite CEO Mark Bristow’s focus on asset consolidation and cost control since 2019, the company has faced challenges in boosting returns from its global operations.
Sources familiar with the matter told the FT that Elliott views Barrick positively and may advocate separating its stable North American operations from higher-risk international assets. Such a split could unlock value in the company’s North American portfolio, which includes gold and copper mines in Canada and the US.
Barrick’s shares rose about 1% in US trading on Tuesday following the report.
Analysts at Jefferies said the activist stake increases the likelihood of a break-up of Barrick’s portfolio, which could separate North American operations from higher-risk assets in Africa and the Asia-Pacific region. “Headlines over the past few days suggest Barrick’s board is considering breaking up the company, and today the FT reported that activist investor Elliott has acquired a $700 million stake,” Jefferies wrote in a note.
Jefferies’ analysis suggests the base-case net asset value (NAV) for Barrick is roughly $45.92 per share, implying about 24% upside to current share prices. In a scenario where North American and international assets are valued separately, the NAV could rise to between $43.61 and $48.53 per share, implying 18–31% upside. Applying peer target multiples to Barrick’s gold and copper assets could push a NAV-based valuation to $51.66 per share, roughly 12% above Jefferies’ base-case assessment.
Barrick has not commented on Elliott’s investment or the potential split. The company, headquartered in Toronto, has focused on streamlining its operations and reducing costs under Bristow’s leadership, but the activist investor’s involvement could accelerate moves to restructure or divest certain assets.