Barrick shakes up leadership as breakup speculation swirls

Barrick Mining Corp. is shaking up management in a bid to improve performance as speculation swirls over a possible acquisition or break up of the Canadian mining company.

Two senior managers and a top executive are departing as part of the overhaul, which includes changes to the regional operating model, according to a letter to employees signed by chief executive officer Mark Hill, which was seen by Bloomberg.

The memo coincides with activist investor Elliott Investment Management LP taking a large stake in Barrick after operational issues and cost blowouts left the gold producer trailing peers while bullion prices surged. It’s also grappled with the seizure of a key mine in Mali and three fatalities this year. Mark Bristow departed as CEO abruptly in September.

Hill is ringing the changes amid reports the company has been looking at a breakup, including the possibility of separating into two listed entities. Last month, Bloomberg reported that Newmont Corp. has studied a deal to gain control of the two companies’ prized Nevada mines.

In Tuesday’s letter, Hill referred to the safety performance as “deeply concerning” while describing operational delivery as “inconsistent.”

“Whilst the fundamentals of our company are excellent, we cannot continue to operate in this way,” the CEO said. The changes will “evolve our operating model to align more closely with our strategic priorities and focus leadership where it has the greatest impact.”

Barrick declined to comment.

The Canadian miner now plans to bring its Dominican Republic mine into the company’s North American operations, while consolidating its Latin American and Asia Pacific operations into one,

Among management changes, Kevin Thomson, who ran Barrick’s corporate development team, has left the firm along with Christine Keener, who was chief operating officer for North American. Kevin Annett, the North American chief financial officer, is also leaving. Thomson will be replaced by George Joannou, while Tim Cribb will take over from Keener and Wessel Hamman will take over from Annett.

Hill also told employees that the company’s Pakistan copper project, Reko Diq, will have its own leadership structure given the size and scale of the asset. Chad Coulin will begin as Reko Diq’s project director. Gui Recena Costa will head Latin American operations.

To be sure, Barrick’s shares are up 119% in the past year. But that trails a 131% average gain among peers as investors pile in to gold as a haven amid government debt worries and as some central banks diversify away from the dollar.

(By Jacob Lorinc)