Barrick Mining Shares Advance Following Hemlo Gold Mine Divestiture and Analyst Upgrade

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Barrick Mining Corporation (B, ABX.TO) shares experienced a significant advance, rising +9.71% on September 19, 2025, following the announcement of the sale of its Hemlo Gold Mine in Ontario, Canada, and a subsequent price target increase from Raymond James. This strategic divestiture, valued at up to $1.09 billion, is a pivotal move in Barrick's ongoing efforts to optimize its asset portfolio and enhance financial flexibility.

The Event in Detail

Barrick Mining Corporation entered into a definitive agreement to sell its Hemlo Gold Mine to Carcetti Capital Corp., which intends to rename itself Hemlo Mining Corp. upon closing. The transaction is structured to include $875 million in upfront cash consideration, $50 million in common shares of Carcetti Capital Corp., and up to $165 million in additional contingent cash payments linked to future gold price thresholds and production. The total consideration could reach $1.09 billion. The deal is anticipated to close in the fourth quarter of 2025, subject to customary closing conditions and regulatory approvals.

To fund the acquisition, Carcetti Capital Corp. has secured a comprehensive $1.0 billion financing package. This includes a $400 million gold stream agreement with Wheaton Precious Metals Corp. (WPM, TSX:WPM), $225 million in senior secured credit facilities underwritten by the Bank of Nova Scotia, and a $415 million bought deal private placement offering of Subscription Receipts.

Analysis of Market Reaction

Investors reacted favorably to the news, driving Barrick Mining's stock (B) up by +9.71% on September 19, 2025. This surge was accompanied by a robust trading volume of $1.49 billion, marking it as the 106th most active stock and a 101.48% increase from the previous day’s volume. The positive momentum also followed a rating adjustment by Raymond James, which raised its price target for Barrick to $30 from $28.50, while maintaining an Outperform rating. Analyst B. Macarthur from Raymond James emphasized that the Hemlo sale is expected to remove a drag on Barrick’s earnings and unlock value, particularly in its core copper assets. This sentiment is reflected in revised EPS forecasts, with Q3 2025 earnings projected at $0.60 (up from $0.54) and a steady increase to $0.70 by Q4 2026.

Broader Context & Implications

The divestiture of Hemlo represents a significant step in Barrick Mining's broader strategic transformation. The company has been actively streamlining its portfolio, shedding non-core assets to focus on "Tier One" gold and copper operations. This sale follows earlier divestitures in 2025, including stakes in the Donlin Gold Project in Alaska and Alturas, bringing the total expected gross proceeds from non-core asset sales this year to over $2 billion. Barrick President and Chief Executive Mark Bristow stated that the sale aligns with the company's capital allocation approach, strengthening its balance sheet and funding returns to shareholders.

"The sale of Hemlo at an attractive valuation marks the close of Barrick's long and successful chapter at the mine and underscores our disciplined focus on building value through our Tier One gold and copper portfolio," said Mark Bristow, President and CEO of Barrick.

This strategic pivot also includes a heightened emphasis on critical metals like copper, aligning with global energy transition demands. Barrick aims for 3.15–3.5 million ounces of gold production and 200,000–230,000 tons of copper in 2025, supported by projects such as Reko Diq and the Lumwana Super Pit expansion. Furthermore, groundbreaking discoveries at its Fourmile project in Nevada are expected to significantly contribute to its future resource base.

Expert Commentary

Industry experts view the transaction positively. Jason Kosec, incoming President & CEO of Hemlo Mining Corp., highlighted the acquisition's role in establishing a new mid-tier Canadian growth-focused gold producer:

"The acquisition of Hemlo establishes the foundation for the next leading mid-tier Canadian growth-focused gold producer. Our business objective is clear: to maximize the value of Hemlo's existing infrastructure through a fit-for-purpose operating approach, while unlocking new opportunities through an aggressive brownfields exploration strategy."

Randy Smallwood, CEO of Wheaton Precious Metals Corp., also commented on the opportunity presented by Hemlo:

"Hemlo offers a unique opportunity to add immediate, accretive gold ounces from a politically stable jurisdiction, backed by a long history of production and a capable operating team."

Looking Ahead

The anticipated closing of the Hemlo Gold Mine sale in Q4 2025 is expected to further bolster Barrick's balance sheet and provide capital for exploration and shareholder returns. The company's strategic focus on optimizing its portfolio through divestitures of non-core assets and investing in high-grade gold and critical copper projects suggests a clear direction for long-term value creation. Market participants will continue to monitor the successful integration of these strategic shifts and their impact on Barrick's operational performance and financial metrics.