Barrick Names Bock To Lead Overseas Arm Ahead Of Split

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 takes over immediately as CEO of Barrick’s Rest of World division, overseeing operations and projects across Africa, the Middle East, Latin America and Asia Pacific that produce more than 2 million gold-equivalent ounces annually, the company said.

Barrick expects output from the portfolio to increase by more than 20% over the next three years, putting Bock 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.

The international business also has relationships with Chinese partners through joint mine ownership and co-investment, which chairman John Thornton has identified as a distinguishing feature of the portfolio.

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 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 in 2019 as finance chief for Africa and the Middle East before becoming chief operating officer for the region in 2022.

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.

His promotion puts an executive with experience in Barrick’s international operations at the helm as the company prepares to separate its businesses. 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.