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Barrick Wraps Up Tongon Interests' Divestiture to Atlantic Group

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Key Takeaways

  • Barrick completes the $305M sale of Tongon mine interests and exploration properties to Atlantic Group.
  • The deal brings $192M cash and up to $113M in contingents tied to gold prices and resource conversions.
  • Barrick will use the proceeds to bolster its balance sheet and deliver returns following the delayed closing.

Barrick Mining Corporation (B - Free Report) announced the completion of the divestment of its interests in the Tongon gold mine, along with a few of its exploration properties in Côte d’Ivoire, to the Atlantic Group. The consideration totaled $305 million.

The total consideration consists of a cash consideration of $192 million, including $23 million shareholder loan repayment within six months of closing and contingent cash payments totaling up to $113 million payable based on the price of gold for 2.5 years and resource conversions over five years.

The Atlantic Group is a privately held multisectoral Pan-African Group with diversified interests in financial services, agriculture and industry, and a strong footprint across 15 countries in Africa. The acquisition marks a transition in Tongon’s ownership, as local stewardship and community benefits begin influencing it. Barrick successfully extended the life of Tongon through exploration, with the mine generating revenues of over $2 billion for the Ivorian economy over a span of 15 years.

Barrick plans to use the proceeds to strengthen its balance sheet and deliver returns to shareholders.

The company’s shares have gained 141.2% over the past year compared with the industry’s 121% growth.

Zacks Investment Research
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B’s Zacks Rank & Key Picks

Barrick currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Basic Materials space areKinross Gold Corporation (KGC - Free Report) , Fortuna Mining Corp. (FSM - Free Report) and Harmony Gold Mining Company Limited (HMY - Free Report) .

At present, KGC sports a Zacks Rank #1 (Strong Buy), while FSM and HMY carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for KGC’s current-year earnings is pegged at $1.63 per share, indicating a rise of 139.71%. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, with an average surprise of 17.37%. KGC’s shares have risen 178.7% in the past year.

The Zacks Consensus Estimate for FSM’s current fiscal-year earnings stands at 83 cents per share, indicating an 80.4% year-over-year increase.Its shares have surged 96.9% in the past year.

The Zacks Consensus Estimate for HMY’s 2026 earnings is pegged at $2.66 per share, indicating a rise of 112% from year-ago levels. HMY’s shares have gained 116.1% in the past year.

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