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Is Barrick's Asset Sale Spree Paving the Way for Next Growth Phase?

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Key Takeaways

  • Barrick agreed to sell its Tongon mine and exploration assets in Cote d'Ivoire for up to $305M.
  • The deal extends Barrick's portfolio reshaping after multiple asset sales.
  • Proceeds will bolster its balance sheet, fund growth and enhance shareholder returns.

Barrick Mining Corporation (B - Free Report) recently agreed to sell its interests in the Tongon gold mine and certain of its exploration properties in Côte d’lvoire to the Atlantic Group for total consideration of up to $305 million, including a cash consideration of $192 million. 

Tongon, in which Barrick holds an 89.7% interest, produced 148,000 ounces of gold in 2024. It has generated more than $2 billion for the Ivorian economy in the form of taxes, infrastructure development, salaries and payments to local suppliers since pouring its first gold in 2010. 

Tongon’s mine life has extended beyond its original closure plan of 2020 through successful exploration by Barrick. The transaction, which is subject to customary closing conditions, is expected to be completed in late 2025.

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 also agreed to sell the Alturas Project in Chile to a subsidiary of Boroo Pte Ltd (Singapore) in August 2025. Moreover, 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.

Barrick, in September 2025, also agreed to sell its Hemlo Gold Mine in Canada to Carcetti Capital Corp. for gross proceeds of up to $1.09 billion. 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 non-core asset sales will support Barrick’s capital allocation strategy, which focuses on reinforcing its balance sheet and delivering returns to its shareholders. The funds generated from these divestments will also allow Barrick to finance its key growth initiatives.  

Among Barrick’s major peers, Newmont Corporation (NEM - Free Report) 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 - Free Report) 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 & Estimates

Barrick’s shares have gained 111.2% year to date compared with the Zacks Mining – Gold industry’s rise of 115.1%, 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 14.02, a roughly 12.8% discount when stacked up with the industry average of 16.07X. 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 67.5% and 13.8%, 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). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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