Barrick Mining Sells Last Canadian Mine for $1.09 Billion in Strategic Portfolio Shift

What's Happening?

Barrick Mining has announced the sale of its last producing gold mine in Canada, Hemlo, to Carcetti Capital, which will be renamed Hemlo Mining Corp (HMC). The transaction, valued at up to $1.09 billion, includes $875 million in cash, $50 million in HMC shares, and up to $165 million in production and gold price-linked payments starting in 2027. This sale is part of Barrick's ongoing strategy to divest noncore assets and focus on large, long-life gold and copper operations. The deal is expected to close in the fourth quarter of 2025, pending regulatory approvals.

Why It's Important?

The sale of Hemlo marks a significant step in Barrick's strategy to optimize its portfolio by shedding smaller, lower-margin assets. This move allows Barrick to concentrate on its Tier 1 mines, which are characterized by high production, long mine life, and low costs. The proceeds from the sale will bolster Barrick's balance sheet and support shareholder returns. Additionally, the transaction highlights Barrick's commitment to repositioning itself for the energy transition by advancing growth in copper. The sale is expected to generate over $2 billion from the divestment of noncore assets this year.

What's Next?

Following the sale, HMC plans to graduate to the TSX-V, backed by Wheaton Precious Metals and Orion Mine Finance. Barrick will continue to focus on its Tier 1 gold and copper portfolio while maintaining a pipeline of early-stage projects and exploration targets in Canada. The company aims to unlock future potential and deliver benefits for stakeholders through strategic asset management. Barrick's reshaped portfolio positions it to capitalize on the energy transition and enhance shareholder value.

Beyond the Headlines

The divestment of Hemlo reflects broader trends in the mining industry, where companies are increasingly focusing on sustainable and efficient operations. Barrick's strategy aligns with the growing emphasis on environmental, social, and governance (ESG) criteria, as it seeks to optimize its asset base and contribute to the energy transition. The sale also underscores the importance of strategic partnerships and experienced management in unlocking the potential of mining assets.