Barrick Mining (TSX: ABX; NYSE: B) and Newmont (NYSE, ASX: NEM; TSX: NGT) have reached a settlement agreement resolving their disputes over the Nevada Gold Mines joint venture. The deal requires Newmont to pay Barrick $1.95 billion (C$2.7 billion) and brings several key exploration projects into the joint venture.

The Nevada Gold Mines joint venture was formed in 2019 by combining the two companies' Nevada assets into the world's largest gold mining complex, with Barrick as operator holding 61.5% and Newmont holding 38.5%. The partnership had been strained by disagreements over whether certain high-grade exploration projects — including Barrick's Fourmile discovery — fell inside or outside the JV boundaries, affecting how costs, revenues, and ownership were allocated.

Under the terms of the settlement agreement, Barrick's Fourmile project and Newmont's Fiberline and Mike projects will be integrated into Nevada Gold Mines. Newmont is scheduled to make the payment within 30 days, and the partners have agreed to updated governance provisions for the joint venture.

Newmont has also consented to Barrick's planned initial public offering (IPO) of its North American gold assets, eliminating a potential obstacle as Barrick works to complete the separation by the end of the year. The settlement removes lingering uncertainty surrounding the partnership between the world's two largest Western gold producers and clears the path for Barrick to proceed with an IPO that has drawn growing attention from investors focused on the company's performance and leadership.

Q2 Earnings Miss Despite Stronger Output

The settlement announcement coincided with Barrick's second-quarter results, which fell short of analyst expectations. Adjusted earnings came in at 82¢ per share for the quarter ended June 30, below the 88¢ average estimate compiled by LSEG. Higher production costs and retrospective tax penalties in Mali offset stronger-than-expected gold production.

The Mali tax penalties reflect a broader campaign by the country's military-led government to renegotiate mining contracts and assert greater control over the sector. Barrick's Loulo-Gounkoto complex has been a particular focus, with the government seeking a larger share of revenue from one of Mali's most significant mining operations.

Gold production rose 11% from the first quarter to 796,000 oz., surpassing Barrick's guidance range of 730,000 to 770,000 ounces. The company credited the increase to an ahead-of-schedule ramp-up at Loulo-Gounkoto in Mali, a faster-than-anticipated recovery at Pueblo Viejo in the Dominican Republic following planned first-quarter maintenance, and record underground tonnage at Cortez in Nevada as the Goldrush project continued ramping up.

Gold cost of sales reached $1,993 per oz., with all-in sustaining costs at $1,866 per ounce. Barrick stated that mining and processing cost discipline kept expenses within guidance despite upward pressure from fuel prices. Operating cash flow increased 28% year over year to $1.7 billion.

Barrick maintained its full-year production and cost guidance while lowering expected attributable capital expenditures to a range of $3.8 billion to $4.2 billion.

IPO and Leadership Scrutiny

Barrick's North American IPO remains on track for completion by year-end, the company said Monday. Mark Hill is set to become CEO of the new company following the separation.

Barrick first announced the IPO in December but did not name a CEO for the business until Monday's announcement, a delay that deepened criticism and frustration among some investors regarding the company's strategic direction.

Benoit Gervais, portfolio manager at Mackenzie — a subsidiary of Power Corp. and Barrick's 10th-largest shareholder — has publicly called for chairman John Thornton to step down. "It would be good if someone else took over the chairman role," Gervais told Bloomberg News.

The IPO could represent Thornton's last opportunity to reverse Barrick's trajectory after more than a decade leading the company. He has held the top position since 2014, initially as executive chairman and, since last year, as chairman.

During Thornton's tenure, Barrick shares have trailed those of rivals Newmont and Agnico Eagle Mines (TSX, NYSE: AEM), and the company has struggled to fully capitalize on gold's historic price rally. Barrick slipped to third place among global gold producers last year after Agnico Eagle surpassed it in output. Newmont solidified its leading position through its acquisition of Newcrest Mining in 2023, while Agnico Eagle's growth was bolstered by its 2022 merger with Kirkland Lake Gold — consolidation moves that left Barrick as the only major among the top three producers without a similarly transformative deal.

Thornton subsequently removed longtime CEO Mark Bristow and installed Hill at the helm. Hill's appointment to lead the proposed North American company places him at the center of Barrick's effort to unlock value from its premier assets and rebuild investor confidence.