Barrick sells Hemlo Gold mine for $1.1 billion

[Ben Graham]

Barrick Mining (NYSE: B; TSX: ABX) has agreed to sell its last operating gold mine in Canada, marking a significant milestone as the company shifts its focus toward copper.

The Hemlo Gold Mine in Ontario will be sold to Carcetti Capital Corp. for $875 million in cash and $50 million worth of Carcetti shares. An additional $165 million in contingent payments could be triggered depending on future gold prices. The sale is expected to close in the fourth quarter of 2025.

The $1.1 billion transaction comes at a time when bullion prices are at all-time highs, allowing Barrick to realize substantial value from one of its legacy assets.

Carcetti said it will rename itself Hemlo Mining Corp. after the acquisition. To help finance the purchase, the company has arranged a $400 million streaming agreement with Wheaton Precious Metals.

Under the deal, Wheaton will purchase 13.5% of Hemlo’s gold production until 181,000 ounces are delivered, followed by 9% until an additional 157,330 ounces are delivered, and 6% for the life of the mine.

Barrick shares were down 1.4% in Toronto on Thursday morning after the deal, giving the company a market capitalization of C$68.84 billion (US$49.70 billion).

BMO Capital Markets valued Hemlo at around $620 million under its long-term assumptions, but as much as $1.2 billion at current spot prices. The agreed deal value suggests a price of roughly $3,150 per ounce of reserves, significantly above BMO’s long-term forecast of $2,200 per ounce.

Jefferies Securities said the deal was well-timed, calling it ‘a good time to be selling a gold asset.’

No operating mines left in Canada

The sale underscores CEO Mark Bristow’s broader strategy of diversifying Barrick’s portfolio beyond gold and into copper.

Since acquiring Randgold Resources in 2019, Barrick has cut back its Canadian presence by relocating head office functions outside Toronto and reducing the number of executives based in the country.

While Hemlo’s departure leaves Barrick without an operating mine in Canada, the company maintains a pipeline of early-stage projects and exploration targets there.

“Canada remains an important jurisdiction for Barrick, with a portfolio that includes a number of prospective early-stage projects and exploration targets,” the company said in a statement. “We will continue to pursue opportunities to find and operate world-class gold and copper mines in Canada.”

Hemlo has produced more than 21 million ounces of gold since its discovery and generated 143,000 ounces in 2024, representing about 3.5% of Barrick’s total output.

Barrick has also been active in selling other non-core assets, including a $1 billion divestment in Alaska earlier this year. Combined with the sales of Donlin and Alturas, total gross proceeds from such deals are expected to exceed $2 billion in 2025. At the same time, Barrick is advancing major copper projects, including the $6 billion Reko Diq mine in Pakistan and an expansion in Zambia that could place the company among the world’s top copper producers.