Street View: Barrick’s North America IPO plan seen as key to unlocking value

Canadian miner Barrick Mining ABX.TO on Monday said it was exploring an initial public offering (IPO) of a subsidiary that would hold its North American gold assets as bullion prices this year have rallied to record highs

Shares of the company have gained 161.5% YTD, including session's move

NORTH AMERICA IPO TO UNLOCK VALUE, ATTRACT BUYERS

Raymond James raises PT on U.S.-listed stock to $45 from $42

Brokerage says the announcement signals efforts to improve Barrick's asset mix and close the valuation gap with peers

Cormark Securities ("Buy," PT:C$78) says a split could unlock significant value for a high-quality, gold-only portfolio that is currently being weighed down by lower-quality assets in risky geopolitical jurisdictions

Move could also potentially trigger acquisition interest from peers like Agnico Eagle AEM.TO and Newmont NEM.N seeking similar re-rating opportunities, Cormack says

Stifel("Buy", PT:C$58.81) says "we believe ownership consolidation of Pueblo Viejo and improved operational performance at North American operations are keys to a higher multiple for a North America IPO"

Brokerage says core of the decision to explore IPO include capture valuation upside at Fourmile, discount to peers and recent CEO leadership transition