Inside Barrick's $42B shareholder revolt: Why top investors are fighting John Thornton's North American gold spin-off

Why the spin-off plan is so controversial

Thornton's plan would carve out Barrick's Nevada operations (including the Goldstrike and Cortez mines), its Fourmile discovery, and other top North American and Caribbean assets into a separately listed company, internally code-named "NewCo." The deal is reportedly valued at around $42 billion .

Major shareholders including VanEck, Mackenzie Financial, and Franklin Equity Group have signaled opposition. They argue the plan would dilute existing holders' interest in Barrick's most valuable, highest-margin assets and effectively transfer value to new IPO investors. At least one investor is now calling for Thornton to resign his position, which he has held since 2014 .

The spin-off depended on resolving a legal and operational feud with Newmont over the Nevada Gold Mines joint venture. Newmont had issued a formal notice of dispute in early 2026 claiming the spin-off breached their partnership terms . On August 10, Barrick announced a $1.95 billion agreement with Newmont that settled the dispute and cleared the path for the IPO, with Barrick saying it expects to complete the listing by the end of 2026 .

Earlier in 2026, the spin-off also faced delays from an undisclosed Teck royalty obligation and the broader Newmont litigation . Barrick has also been navigating its lowest annual gold output in 25 years, making the IPO a high-stakes gambit to re-rate the company's valuation .

Q2 2026 earnings: Strong operations, headline miss

Barrick reported Q2 results on August 10, 2026. The headline numbers disappointed Wall Street:

Gold output of 796,000 ounces was 11% higher than Q1 and above guidance. Copper production was 56,000 tonnes. Net earnings surged 50% to $1.22 billion, and attributable adjusted EBITDA hit $2.5 billion (59% margin) . Some sources note that adjusted EPS of $0.82 was in line with Bloomberg consensus, while a separate data point showed it missed a higher analyst estimate of $0.94 .

Despite strong underlying operations, the EPS and revenue miss — combined with the simultaneous announcement of the $1.95 billion Newmont settlement, which some investors viewed as a costly prerequisite for the unpopular IPO — sent Barrick shares down roughly 5% in premarket trading on August 10 . The stock was also trading at around $40.91 by the afternoon, down 6.34% on the day .

The bottom line

Chairman Thornton is pushing forward with a transformative but deeply contested spin-off of Barrick's best North American mines. While the $1.95 billion Newmont settlement removed a critical obstacle, the plan continues to face determined opposition from major institutional holders who view it as value-dilutive. Barrick's Q2 earnings showed robust operational momentum, but the headline miss provided a fresh catalyst for the stock to sell off — adding financial pressure at a time when Thornton most needs shareholder confidence. Whether the IPO ultimately proceeds may hinge on whether Thornton can win back his largest investors or whether the growing calls for his resignation gain traction.