Can Barrick Mining's Divestment Drive Power Its Next Phase of Growth?

Barrick Mining Corporation B recently wrapped up the divestment of Hemlo Gold Mine in Canada to Carcetti Capital Corp., for a total consideration of up to $1.09 billion. The divestiture marked the end of a successful chapter at Hemlo. 

The consideration includes $875 million in cash, $50 million in Hemlo Mining Corp. shares, and a production and tiered gold price-linked cash payment structure of up to $165 million beginning in January 2027 for a five-year term. 

Hemlo, which produced 143,000 ounces of gold last year, was Barrick’s last operating mine in Canada, a key region for Barrick. With the closure of its operations with Hemlo, Barrick plans to unlock upcoming opportunities in the region through several early-stage projects and exploration targets. The divestment enables Barrick to access opportunities and operate world-class gold and copper mines in the country. 

Barrick has divested or exited several non-core assets to sharpen its focus on Tier 1 assets. Barrick, in early November, also concluded the divestiture of the Alturas Project in Chile to a subsidiary of Boroo Pte Ltd (Singapore). It also completed the sale of its 50% interest in the Donlin Gold Project in Alaska in June 2025. Moreover, Barrick divested Kalgoorlie Consolidated Gold Mines (KCGM) in Australia, the Massawa project in Senegal and Lagunas Norte in Peru in 2019, 2020 and 2021, respectively.

In October 2025, Barrick agreed to sell its interests in the Tongon gold mine and certain of its exploration properties in Côte d’lvoire to the Atlantic Group for a total consideration of up to $305 million, including a cash consideration of $192 million. 

The proceeds from non-core asset sales will support Barrick’s capital allocation strategy, which focuses on reinforcing its balance sheet and delivering returns to its shareholders. The funds generated from these divestments will also allow Barrick to finance its key growth initiatives.  

Among Barrick’s major peers, Newmont Corporation NEM completed its non-core divestiture program in April 2025 with the sale of its Akyem operation in Ghana and its Porcupine operation in Canada. Following the sale of Greatland and Discovery shares, Newmont anticipates generating $3 billion in after-tax cash proceeds from its 2025 divestiture program. These funds will support Newmont’s capital allocation strategy, which focuses on reinforcing its balance sheet and delivering returns to its shareholders.

Kinross Gold Corporation KGC streamlined its portfolio through the sale of its Russian assets, including the Kupol mine and Udinsk project in 2022. It also sold its 90% interest in the Chirano mine in Ghana in 2022. With these divestments, Kinross’ rebalanced portfolio now has a strong production profile anchored by Tasiast and Paracatu, its two biggest assets.

B’s Price Performance, Valuation & Estimates

Barrick’s shares have gained 173.2% year to date compared with the Zacks Mining – Gold industry’s rise of 138.9%, courtesy of the gold price rally.

From a valuation standpoint, B is currently trading at a forward 12-month earnings multiple of 12.84, a roughly 4.3% discount when stacked up with the industry average of 13.42X. It carries a Value Score of B.

The Zacks Consensus Estimate for B’s 2025 and 2026 earnings implies a year-over-year rise of 78.6% and 47.2%, respectively. The EPS estimates for 2025 and 2026 have been trending higher over the past 60 days.

B stock currently carries a Zacks Rank #3 (Hold).
 
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This article originally published on Zacks Investment Research (zacks.com).

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