With gold hitting US$3,674/oz highs, Barrick Mining is selling off its last Canadian operation for US$1.1 billion (A$1.66 billion) as CEO Mark Bristow doubles down on the company's copper-heavy future, anchored by massive projects in Pakistan and Zambia.
Barrick Mining has agreed to sell its Hemlo Gold Mine in Ontario to Carcetti Capital Corp for US$875 million cash plus $50 million in Carcetti shares, marking the end of an era for the mining giant's Canadian gold production.
Throw in another $165 million in contingent payments tied to future gold price thresholds, and you're looking at a $1.1 billion transaction expected to close in Q4 this year.
Since acquiring Randgold Resources back in 2019, Barrick has systematically wound down its Canadian presence by relocating head office functions outside Toronto and cutting down executive positions.
The execution of the sale comes as bullion smashed through all-time highs to hit US$3,674/oz on 9 September - up more than US$1,000/oz from this time last year.
Gold's rally has let Barrick extract maximum juice from what many see as a legacy asset - as the miner turns its attention to red metal.
Copper ambitions take centre stage
The Hemlo disposal is the latest move in Bristow's master plan to transform Barrick from a gold house into a diversified metals outfit with some serious copper exposure.
That's because by 2030, copper is slated to account for ~40% of Barrick's EBITDA, up from just 15% in 2023.
Barrick's shift hinges on two flagship developments:
- The monster US$6 billion Reko Diq copper-gold project in Pakistan's Balochistan province, which received shareholder approval earlier this year. Reko Diq is tipped to generate ~US$74 billion in free cash flow over 37 years. Construction kicked off in Q1 this year, with first production targeted for 2028.
- Pumping US$2 billion into expanding its existing Lumwana operation in Zambia, boosting annual copper output from 30,000t to ~240,000t by 2027.
Asset clean-out continues
Earlier in 2025, Barrick completed the sale of its Donlin Gold Project for US$1 billion in cash. Combined with Hemlo and other divestments, total gross proceeds from asset sales are expected to exceed US$2 billion this year.
BMO Capital Markets pegged Hemlo's value at around US$620 million under long-term assumptions - but that blows out to as much as US$1.2 billion at current bullion spot prices.
The agreed price for Hemlo suggests roughly US$3,150/oz of reserves - well above BMO's long-term forecast of US$2,200/oz.
Carcetti Capital - which will rename itself Hemlo Mining Corp post-acquisition - has arranged a US$400 million streaming agreement with Wheaton Precious Metals to help finance the purchase.
Under the deal, Wheaton will buy 13.5% of Hemlo's gold production until 181,000oz are delivered, then 9% until another 157,330oz are delivered and 6% for the mine's remaining life.
While Hemlo's departure leaves Barrick without an operating mine in Canada, the miner still has early-stage projects and exploration targets dotted across the country.
"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.
Midas touch
With the precious metal consistently breaking new price records - and recently breaking into a new inflation-adjusted all-time high - gold ounce sales delivered Barrick strong Q2 2025 results with EPS hitting US$0.47 – the highest since 2013 and more than 2X year-on-year.
The company also declared a total dividend of US$0.15/share, including a performance top-up.
Looking ahead, Barrick is targeting 30% growth in AuEq ounces by 2030, driven primarily by its major copper projects coming online.
Hemlo has produced more than 21Moz gold since discovery and generated 143,000oz in 2024, ~3.5% of Barrick's total output.
With a market cap of US$50.2 billion, Barrick shares closed slightly down at US$29.40 on the NYSE.
