The latest shakeup comes after the departure of Barrick’s long-time Chief Executive Officer, Mark Bristow, in September.
- The changes include the departure of top officials in its North America operations.
- The Reko Diq copper project in Pakistan will have its own leadership structure due to its large scale.
- Earlier in the day, the Financial Times revealed that Elliott has become one of the top 10 shareholders in Barrick.
Barrick Mining (B) has reportedly made changes to its management to improve performance, coinciding with activist Elliott Investment Management LP building a stake in the firm.
The latest shakeup comes after the departure of Barrick’s long-time Chief Executive Officer, Mark Bristow, in September, following sustained criticism over production shortfalls and rising costs. Mark Hill took over as the interim CEO.
What Are The Executive Changes?
According to a Bloomberg News report, citing a letter issued to employees by Hill, Kevin Thomson, the head of Barrick’s corporate development team, has left the firm alongside Christine Keener, the chief operating officer for North America. The Chief Financial Officer of North America, Kevin Annett, is also leaving. The report further stated that George Joannou will replace Thomson, while Tim Cribb will take over from Keener, and Wessel Hamman will take charge in Annett’s position.
Hill also reportedly told employees that the firm’s Reko Diq copper project in Pakistan will have its own leadership structure due to its large scale. Chad Coulin will begin as Reko Diq’s project director while Gui Recena Costa will head Latin American operations.
Organizational Changes Come Amid Elliott Entry
Barrick stock closed up 2.1% on Tuesday after the Financial Times revealed that Elliott has become one of the top 10 shareholders in Barrick, implying an investment of at least $700 million. The hedge fund was reportedly encouraged by discussions with Barrick’s board, chaired by John Thornton, to consider splitting the company into two entities, separating its fast-growing North American assets from its business in high-risk jurisdictions across Africa and Asia.
A potential split of Barrick would reverse its 2019 merger with Randgold, refocusing the company on its core North American assets, such as the Fourmile project in Nevada. The strategic move could include the sale of its African operations and the Reko Diq project in Pakistan, if financing is secured.
Barrick’s output has also been affected by the standoff with the Military junta in Mali over its Loulo-Gounkoto mine earlier this year, which resulted in a $1 billion write-off.
What Are Stocktwits Users Thinking?
Retail sentiment on Stocktwits about Barrick was still in the ‘bearish’ territory at the time of writing.
One user viewed the $38 mark as a key level for the stock and hoped a strong earnings report by Nvidia could propel the markets, alongside Barrick stock.
Could Barrick Stock Rally Sustain?
While Barrick stock has jumped nearly 140% this year amid the rally in bullion prices, its gains still lag those of some peers, including Kinross Gold, which has surged 170%. Gold prices have also pulled back from the October peaks, amid waning chances of a Federal Reserve rate cut. However, a major strategic move could see it jump even further.
In February, Bloomberg reported that since 2020, nearly 95% of the firms Elliott targeted saw their shares rise on the day it became known that the activist had built a stake, with an average return of about 5.5%. Additionally, over two-thirds of the targets held their advances a year later, with an average gain of more than 35%.
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