Barnes (US:B) Benzinga·2025-12-17 11:17Core Viewpoint - Barrick Mining Corporation has resolved a long-standing dispute with the government of Mali, regaining control over the Loulo-Gounkoto gold asset after nearly two years of conflict and production halts [1][5]. Group 1: Dispute Background - The dispute originated in 2023 when Mali revised its mining code to increase state revenues through higher taxes and royalties [2]. - Tensions escalated through 2024 as Barrick resisted the changes, leading to audits and slowed export approvals, culminating in a court-ordered seizure of stockpiled gold in early 2025 [3]. Group 2: Resolution Details - In June, the Malian government took provisional control of the mine, detaining several Barrick employees and stalling negotiations [4]. - A breakthrough occurred last month when Barrick agreed to a financial settlement of approximately $430 million, leading to the release of detained employees and restoration of operational control [5]. Group 3: Financial Implications - Gold prices have surged over 55% year-to-date in 2025, with Loulo-Gounkoto producing between 700,000 and 725,000 ounces annually, translating to potential annual revenues exceeding $3 billion at current prices of over $4,300 per ounce [6]. - The resolution of the Mali situation alleviates significant geopolitical and operational uncertainties for Barrick, especially as gold prices reach record highs [7]. Group 4: Strategic Developments - The agreement enhances Barrick's strategic flexibility, potentially paving the way for a spinoff of its North American gold assets, which is currently under review [7][8]. - If the IPO proceeds, Barrick plans to separate premier assets into a standalone entity, aiming to unlock new shareholder value due to asset quality and jurisdiction safety [8].