Strategic Asset Optimization: How Barrick Mining's Divestment Strategy Powers New Growth Horizons

Market Performance Signals Strategic Pivot

Barrick Mining Corporation B has demonstrated impressive momentum, with shares gaining 173.2% year to date—outpacing the broader Mining – Gold industry’s 138.9% rise. This performance reflects market confidence in the company’s transformation strategy. From a valuation perspective, B trades at a forward 12-month earnings multiple of 12.84, representing a 4.3% discount to the industry average of 13.42X, suggesting potential upside. The Zacks Consensus Estimate projects robust earnings growth, with 2025 and 2026 expected to see year-over-year increases of 78.6% and 47.2%, respectively, indicating sustained momentum ahead.

Reshaping the Portfolio for Tier 1 Assets

Barrick’s recent completion of the Hemlo Gold Mine divestment to Carcetti Capital Corp. exemplifies the company’s intentional repositioning strategy. The transaction, valued at up to $1.09 billion, consisted of $875 million in cash, $50 million in equity consideration, and performance-based payments reaching $165 million through January 2032. Hemlo, which contributed 143,000 ounces of gold production annually, marked Barrick’s final Canadian operation—a move that clears the way for pursuing world-class mineral assets globally.

This divestment is part of a broader capital reallocation initiative. In October 2025, Barrick agreed to divest its Tongon gold mine interests and exploration properties in Côte d’lvoire to the Atlantic Group for up to $305 million in total consideration, with $192 million paid upfront. Earlier in 2025, the company completed the Donlin Gold Project exit in Alaska, while closing out the Alturas Project sale in Chile through Boroo Pte Ltd subsidiary.

Capital Deployment Powers Next-Phase Expansion

The proceeds from these non-core asset sales drive Barrick’s dual objective: strengthening its balance sheet while simultaneously funding major growth initiatives. Rather than holding onto marginal assets, management has chosen to concentrate resources on tier-one operations—a strategic pivot that enables more decisive capital deployment. Barrick plans to leverage freed-up capital to unlock emerging opportunities across multiple geographies and potentially advance early-stage exploration projects in key regions.

Industry Peers Pursue Similar Optimization Paths

Newmont Corporation NEM completed its comparable non-core divestiture program in April 2025, selling the Akyem operation in Ghana and Porcupine operation in Canada. Following additional equity dispositions, Newmont projects $3 billion in after-tax cash proceeds from its 2025 program—capital earmarked for balance sheet reinforcement and shareholder returns.

Kinross Gold Corporation KGC similarly streamlined operations through Russian asset sales in 2022, including the Kupol mine and Udinsk project, plus a 90% stake in Ghana’s Chirano mine. These moves created a leaner portfolio anchored by high-performing assets Tasiast and Paracatu.

Investment Outlook and Valuation Assessment

B stock carries a Zacks Rank #3 (Hold) rating, with a Value Score of B. The 60-day trend in EPS estimates for both 2025 and 2026 shows upward revision momentum, reflecting improving market expectations around the company’s strategic transformation and capital deployment efficiency.