Barrick sells Hemlo Gold mine for $1.1 billion

Core Viewpoint - Barrick Mining has agreed to sell its last operating gold mine in Canada, the Hemlo Gold Mine, to Carcetti Capital Corp for a total of $1.1 billion, marking a strategic shift towards copper investments [2][5]. Transaction Details - The sale includes $875 million in cash and $50 million in Carcetti shares, with an additional $165 million in contingent payments based on future gold prices [2]. - The transaction is expected to close in the fourth quarter of 2025 [2]. - BMO Capital Markets valued Hemlo at approximately $620 million under long-term assumptions, but up to $1.2 billion at current spot prices, indicating a sale price of about $3,150 per ounce of reserves [4]. Strategic Shift - The sale reflects CEO Mark Bristow's strategy to diversify Barrick's portfolio beyond gold and into copper, following the acquisition of Randgold Resources in 2019 [5]. - Barrick has reduced its Canadian presence by relocating head office functions and cutting the number of executives based in Canada [5]. Production and Future Plans - Hemlo has produced over 21 million ounces of gold since its discovery, contributing 143,000 ounces in 2024, which accounted for about 3.5% of Barrick's total output [6]. - Despite the sale, Barrick maintains a pipeline of early-stage projects and exploration targets in Canada, emphasizing its ongoing commitment to the region [6]. Other Asset Sales - Barrick has been active in divesting non-core assets, including a $1 billion sale in Alaska earlier this year, with total gross proceeds from such sales expected to exceed $2 billion in 2025 [7]. - The company is also advancing major copper projects, including the $6 billion Reko Diq mine in Pakistan and an expansion in Zambia [7].