Barrick Mining’s CEO Mark Bristow Ousted Amid Power Struggles

The leadership shake-up at Barrick Mining Corp. has culminated in the ouster of CEO Mark Bristow, a move attributed to ongoing power struggles and strategic disagreements with the company’s chairman, John Thornton. Barrick announced on September 29, 2023, that Mr. Bristow had left the company, but did not provide specific reasons for his departure.

This decision followed years of tension between the two leaders. Mr. Bristow, who took the helm of Barrick in January 2019 after the acquisition of Randgold Resources Ltd., initially enjoyed a strong rapport with Mr. Thornton. However, as time progressed, their relationship deteriorated due to differing visions for the company and a clash of personalities.

According to sources familiar with the situation, Mr. Thornton’s approach, rooted in his background as a long-time investment banker, contrasted sharply with Mr. Bristow’s hands-on management style. Pierre Lassonde, co-founder and chairman emeritus of Franco-Nevada Corp., noted, “The relationship between Bristow and Thornton had been frayed for a number of years. There was a personality clash.” Mr. Bristow, known for his aggressive cost-cutting and micromanagement, often found himself at odds with Mr. Thornton’s more strategic, high-level focus.

Bristow carved out a reputation for negotiating favorable deals, notably a joint venture with Newmont Corp. in Nevada. His assertive personality was evident as he confidently criticized competitors, including a disparaging remark about Kinross Gold Corp.. Yet, beneath this bravado lay a growing disconnect with Thornton over the company’s direction, particularly regarding mergers and acquisitions.

While Mr. Bristow preferred internal growth, his reluctance to pursue acquisitions became a point of contention. In recent years, Barrick’s competitors capitalized on the acquisition market, executing deals that resulted in substantial gains. Mr. Bristow’s steadfast belief in avoiding acquisition premiums, which he deemed excessive, limited Barrick’s growth opportunities during a booming gold market.

Mr. Thornton’s frustration with this approach became evident at a mining conference in June 2022, where he publicly criticized Barrick’s hesitance to engage in strategic acquisitions. He asserted that the company had been “very slow” and that their insistence on detailed analysis was a mistake. As tensions mounted, Barrick’s board began to reflect shareholder concerns about the dual leadership structure, which many believed was unnecessary.

In the 2023 annual general meeting, Mr. Thornton received an approval rating of just 81.9 percent, significantly trailing Mr. Bristow’s 99.5 percent. This disparity indicated a shift in shareholder sentiment, with some investors expressing doubts about Mr. Thornton’s contributions. Following these discussions, Mr. Bristow reportedly leveraged this discontent to enhance his influence within the company.

The turning point came in February 2024, when Mr. Thornton transitioned from executive chair to chairman, effectively reducing his role and authority. This change exacerbated the already strained relationship, particularly as Barrick struggled to meet its production forecasts and faced increased costs in Nevada. Furthermore, the company encountered geopolitical challenges in Mali, leading to significant operational setbacks.

Despite these difficulties, Mr. Bristow remained resolute in his strategy, even when questioned by analysts about the company’s risk profile and the potential need to focus on safer investments in North America. The culmination of these tensions and shortcomings ultimately resulted in Mr. Bristow’s departure.

The decisive moment came on the weekend of September 27, when Mr. Thornton spoke with Mr. Bristow, followed by a board meeting that led to his dismissal. The official announcement was made early on the following Monday, marking a significant shift in Barrick’s leadership landscape.

As Barrick navigates this transition, the implications of this leadership change will be closely watched by investors and industry analysts alike, particularly regarding the company’s future direction and strategic initiatives.