Activist hedge fund Elliott Management has taken a significant position in Barrick Gold, making it one of the miner’s top ten shareholders with a holding likely worth over $1bn, according to a report by the Financial Times.
The move comes amid underwhelming share performance despite a strong gold market rally and follows the departure of CEO Mark Bristow in September.
Elliott is reportedly encouraged by the prospect of splitting Barrick’s North American operations from its higher-risk mines in Africa and Asia, potentially unlocking value through a corporate break-up or asset sales. The company’s board has recently discussed such structural changes, as well as sales of African and Pakistani assets.
Barrick’s North American portfolio includes key Nevada mines and a joint venture with Newmont, while its legacy Randgold assets span higher-risk regions, including the Democratic Republic of Congo and Papua New Guinea. The company’s stock rose nearly 3% in pre-market trading after the report of Elliott’s stake.
With $76.1bn under management, Elliott has a track record of taking multibillion-dollar positions in major companies such as Pepsi, BP, and Honeywell.
