Gold prices dipped slightly Thursday, but remain close to a record high, continuing its strong run in recent years. Barrick Mining announced late Wednesday it is selling it's last active gold mine in Canada.
Barrick Mining said Wednesday it has reached an agreement to sell the Hemlo gold mine to Carcetti Capital for $1.09 billion, including $875 million in cash. The miner will also receive $50 million worth of shares in Carcetti, which will be renamed Hemlo Mining Corp, when the transaction is closed.
In addition, there is a production and tiered gold price-linked cash payment structure of up to $165 million starting in January 2027 for a five-year term, under the transaction.
Barrick said Wednesday the proceeds from the sale will be used to strengthen the company's balance sheet and support capital return 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," Barrick CEO Mark Bristow said in the press release.
The company added it will continue to pursue opportunities to find and operate gold and copper mines in Canada.
Gold Prices And Barrick Stock
The sale of the gold mine comes as gold prices continue to trade higher, supported by expectations of U.S. rate cuts and rising geopolitical tensions. Gold prices reached another record, trading above $3,650 per ounce, on Tuesday amid surging bets of a Federal Reserve rate cut.
ING analysts wrote on Tuesday that "swap traders continue to boost their bets on interest rate cuts and price in three rate cuts this year, including a quarter-point cut at the Fed's meeting next week."
"Lower borrowing costs usually benefit precious metals, which do not pay interest. Monetary policy expectations are now likely to become the primary driver for gold's direction," the analysts added.
Barrick Mining shares edged down around 0.2% to 29.43 during Thursday's stock market after advancing to 29.48 on Wednesday.
The mining stock has surged 90% in the 2025 stock market, soaring 26% higher in August alone. So far this month, Barrick Mining is up more than 10%.
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The 79 stocks in the IBD-tracked Mining-Gold/Silver/Gems industry group have collectively advanced 82% in this year's stock market action. That's good for ninth best in the 197 industries tracked by IBD.
Barrick stock has a perfect 99 Composite Rating. The mining stock also has a strong 93 Relative Strength Rating and an 88 EPS Rating.
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