Barrick sells Hemlo Gold mine for $1.1B

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 towards copper.

The Hemlo gold mine in Ontario will be sold to Calgary-based Carcetti Capital (TSXV/NEX: CART.H) for $875 million (C$1.21 billion) 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 this year’s fourth quarter.

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.

“This sale makes for another significant non-core asset sale this year, bringing total asset sales to over $2 billion,” BMO Capital Markets said in a note on Thursday. Barrick CEO Mark Bristow in June discussed plans to sell Hemlo, the Zaldívar copper mine in Chile and the Tongon mine in Cote d’Ivoire as well as the $1-billion sale of its half of Donlin in Alaska. 

Carcetti said it will rename itself Hemlo Mining after the acquisition. To help finance the purchase, the company has arranged a $400-million streaming agreement with Wheaton Precious Metals (TSX: WPM, NYSE: WPM; LSE: WPM).

Streaming finance

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

Barrick shares fell 1.5% in Toronto by mid-Thursday to C$40.31 apiece, giving the company a market capitalization of C$68.6 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 oz. 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.”

Canada still figures

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 oz. of gold since its discovery and generated 143,000 oz. in 2024, representing about 3.5% of Barrick’s total output.

Barrick is advancing major copper projects, including the $6.6-billion Reko Diq mine stage one in Pakistan and an expansion in Zambia that could place the company among the world’s top copper producers.