Barrick unlocks value from Hemlo sale: Will it support capital plans?

Zacks Zacks Investment Research

Barrick Mining Corporation (B Quick) has agreed to sell its Hemlo Gold Mine in Canada to Carcetti Capital Corp. for gross proceeds of up to $1.09 billion, including an $875 million cash consideration. The divestment, which is expected to conclude within the fourth quarter of 2025, marks the end of a successful chapter at Hemlo. The proceeds from the divestment are expected to be used to strengthen the balance sheet and return capital to its shareholders.

Hemlo, which Barrick has been operating for more than three decades, has produced more than 21 million ounces of gold. Hemlo, which produced 143,000 ounces of gold last year, is Barrick’s last operating mine in Canada — a key region for Barrick. The company plans to unlock upcoming opportunities in the region through a number of early-stage projects and exploration targets. It will look for opportunities to find 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. It completed the sale of its 50% interest in the Donlin Gold Project in Alaska in June 2025. It has also agreed to sell the Alturas Project in Chile to a subsidiary of Boroo Pte Ltd (Singapore), with the deal expected to close within the third quarter of 2025. Prior to this, 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.

Combined with the sale of Donlin and Alturas, Barrick expects to generate over $2 billion from the divestment of non-core asset sales this year. These funds will support its capital allocation strategy, which focuses on reinforcing its balance sheet and delivering returns to its shareholders.

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) also streamlined its portfolio through the sale of its Russian assets, including the Kupol mine and Udinsk project, in 2022. Kinross 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 and estimates

Barrick’s shares have gained 87.3% year to date compared with the Zacks Mining – Gold industry’s rise of 101.6%, courtesy of the gold price rally.

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From a valuation standpoint, B is currently trading at a forward 12-month earnings multiple of 12.81, a roughly 17.8% discount when stacked up with the industry average of 15.59X. It carries a Value Score of B.

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The Zacks Consensus Estimate for B’s 2025 and 2026 earnings implies a year-over-year rise of 56.4% and 21.8%, respectively. The EPS estimates for 2025 and 2026 have been trending higher over the past 60 days.

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

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