Barrick Mining to Sell Hemlo, Expects Proceeds of More Than $1.09B

Barrick Mining Corporation B has announced an agreement to divest its Hemlo Gold Mine in Canada to Carcetti Capital Corp., which is to be renamed Hemlo Mining Corp. (“HMC”) upon the closing of this transaction.

The sale is expected to generate up to $1.09 billion of gross proceeds, including $875 million cash consideration, $50 million worth of HMC’s shares, and production and tiered gold price-linked cash payments of up to $165 million over a five-year term starting in January 2027. The transaction is subject to regulatory approvals and expected to close within the fourth quarter of 2025.

HMC is currently listed on the NEX Board of the TSX Venture Exchange. It is expected to graduate to the TSXV in connection with this acquisition. The company is led by an experienced management team with an in-depth understanding of mining assets in Canada. It is also supported by a consortium of investors such as Wheaton Precious Metals and Orion Mine Finance Management, enhancing HMC’s potential.

The divestiture marks the end of a successful chapter at Hemlo, reflecting Barrick’s strategy of focusing on Tier One gold and copper assets. The proceeds from this transaction will be used to strengthen the balance sheet and return capital to Barrick’s shareholders.

Combined with the sale of Donlin and Alturas, Barrick expects to generate more than $2 billion from the divestment of non-core asset sales this year. Meanwhile, Canada will remain a significant subject for Barrick, as it plans to unlock upcoming opportunities in the region through a number of lined-up early-stage projects and exploration targets.

Barrick’s shares have risen 44.2% over the past year compared with the industry’s 68% growth.

B’s Zacks Rank & Key Picks

B currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Basic Materials space are The Mosaic Company MOS, Carpenter Technology Corporation CRS and Avino Silver & Gold Mines Ltd. ASM. While MOS sports a Zacks Rank #1 (Strong Buy) at present, CRS and ASM carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for MOS’ 2025 earnings is pegged at $3.17 per share, indicating a rise of 60.10% from year-ago levels. The company’s earnings beat the consensus estimate in one of the trailing four quarters while missing it in the rest. Its shares have gained 31.5% in the past year.

The Zacks Consensus Estimate for CRS’ current fiscal-year earnings is pegged at $9.51 per share, indicating a 27.14% year-over-year increase.Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 8.38%. CRS’shares have surged 71.4% in the past year.

The Zacks Consensus Estimate for ASM’s current-year earnings is pegged at 11 cents per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 141.67%. ASM shares have jumped 317.1% in the past year.

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This article originally published on Zacks Investment Research (zacks.com).

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