Barrick Mining (NYSE: B; TSX: ABX) has named Sebastiaan Bock to lead its international gold and copper business as the miner prepares to split its North American and overseas assets.
Bock, who like former CEO Mark Bristow joined Barrick from its takeover of Randgold Resources in 2019, immediately becomes CEO of Barrick’s Rest of World division. He oversees operations and projects across Africa, the Middle East, Latin America and Asia Pacific that produce more than 2 million gold-equivalent oz. annually, the company said.
BMO Capital Markets analysts called Bock’s appointment positive, citing his experience running Barrick’s Africa and Middle East portfolio in several roles. Bock will report to CEO Mark Hill until the North American IPO and is expected to become CEO of Barrick afterward, according to BMO.
The analysts also highlighted the Rest of World business’s production growth and relationships with Chinese partners as key selling points. Barrick expects output from the portfolio to increase by more than 20% over the next three years.
Shares in Barrick Mining fell 1.1% on Tuesday morning in Toronto to $56.41 apiece, valuing the company at $94.8 billion.
IPO advances
Bock’s appointment comes as Barrick moves ahead with plans to separate its North American and international businesses following the resolution of a months-long dispute with Newmont (NYSE, ASX: NEM) over Nevada mining assets.
Under a settlement announced Monday, Newmont agreed to pay Barrick $1.95 billion (C$2.7 billion) in cash within 30 days and consented to Barrick’s planned initial public offering of its North American gold assets. Barrick expects to complete the IPO by year-end.
Resolving the dispute removed the final obstacle to the offering, which would separate Barrick’s North American assets from a geographically broader international portfolio carrying different political, operating and investment risks.
The planned split puts greater emphasis on the performance of the Rest of World division. Barrick says the business could benefit from closer ties with Chinese partners through joint investments, access to technology and supply-chain support.
Overseas growth
Bock joined Barrick as finance chief for Africa and the Middle East before becoming chief operating officer for the region in 2022.
He’s now in charge of a key source of growth as the company seeks to sharpen management focus and address the valuation discount investors often apply to miners operating in higher-risk jurisdictions.
Delivering the projected growth while managing a diverse collection of jurisdictions will be central to establishing the overseas company as a distinct investment proposition after the split.
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