Newmont-Barrick rift over Nevada heats up

Barrick’s (TSX: ABX; NYSE: B) already complicated plan to spin off its North American assets has hit another obstacle after joint venture partner Newmont (NYSE: NEM) issued a notice of default, escalating tensions over their prized Nevada operations.

In a filing late Thursday with the US Securities and Exchange Commission, Newmont said Barrick diverted resources from Nevada Gold Mines, or NGM, to advance its wholly owned Fourmile project. Newmont holds a contractual right of first refusal over moves affecting the venture and argues the alleged actions breach the companies’ 2019 joint-venture agreement.

Newmont said it notified Barrick of the issue last month and sent the formal notice in early February. Under their JV agreement, a partner accused of breaching the pact has 30 days to remedy the issue or begin corrective action. If the dispute remains unresolved, it can be taken to court in Nevada.

“Although we continue to work with Barrick to improve the performance of NGM and will take appropriate steps to address this matter, any such disagreements could have a material adverse effect on our interest in NGM, the business of NGM or the portion of our growth strategy related to NGM,” Newmont said in its 10-K filing.

Speaking to analysts Thursday, Newmont Chief Executive Officer Natascha Viljoen said discussions have focused on improving performance at the Nevada operations. She described the relationship as constructive and said both companies are working in shareholders’ best interests.

Barrick disputed the claims but declined to provide details. “While we disagree with Newmont’s claims, we are limited by the terms of the joint venture agreement in what we can say,” President and chief executive officer Mark Hill said in a statement to Bloomberg News. “We are committed to constructive engagement and to working together with Newmont to deliver shareholder value.”

Shares in Newmont fell 3.2% in pre-market trading in New York to $125.4, while Barrick’s were mostly unchanged at $48.55.

Nevada Gold Mines is central to Barrick’s value. RBC Capital Markets analyst Josh Wolfson said earlier this month that the asset accounts for roughly 60% of Barrick’s market value. Without it, he said, investors may question the company’s appeal.

The joint venture was formed after Barrick dropped a hostile takeover bid for Newmont and instead agreed to combine their adjacent Nevada assets. Barrick owns 61.5% of NGM, while Newmont holds 38.5%.

Spinoff plan tested

Newmont’s move throws a wrench into Barrick’s plan to separate its North American business and sell a 10% to 15% stake in the new company later this year. The proposed entity would include Barrick’s interest in NGM, its Fourmile development and a Dominican Republic mine that is also a joint venture with Newmont. People familiar with the matter said Newmont believes the planned listing requires its approval and has previously expressed interest in acquiring Barrick’s Nevada assets.

The feud comes amid Barrick’s reported weakening production. The company posted a sixth straight annual decline in output in 2025, with production at its lowest level in at least 25 years. It expects volumes to fall again this year, including at NGM.

(With files from Bloomberg)