Barrick Gold is preparing to sell its Hemlo gold mine in Ontario, signaling a potential full exit from its home country as it looks to capitalize on record-high gold prices and rising investor appetite for North American mining assets.
Sources close to the matter report that the sale process began in April, with Canadian Imperial Bank of Commerce (CIBC) engaged to oversee the search for potential buyers and manage the bidding. Neither Barrick nor CIBC has issued official comments.
If completed, the sale of Hemlo would mark Barrick’s complete withdrawal from Canadian mining operations—a significant milestone for the Toronto-based company originally founded in Canada.
Strategic Portfolio Streamlining
Since its merger with Randgold Resources, Barrick has steadily reduced its Canadian presence, decentralizing its operations and shifting focus to higher-return assets globally. The company’s recent actions reflect a broader portfolio optimization strategy:
- This week, Barrick sold its stake in an Alaskan gold project for $1 billion
- The company is also exploring the sale of its Tongon gold mine in Côte d’Ivoire
These moves mirror a broader trend in the mining sector, as peers like Newmont have raised billions by divesting non-core assets.
Hemlo’s Role and Global Context
Hemlo contributed approximately 143,000 ounces of gold in 2023, representing just 3.5% of Barrick’s total annual production. Despite its limited output, the mine holds historical significance for the company.
Globally, Barrick operates 13 gold and three copper assets across 18 countries. However, it faces ongoing challenges, including rising costs at aging facilities and a dispute in Mali that has temporarily impacted one of its top-producing mines.
Yet, amid strong gold prices, the potential divestment of Hemlo signals Barrick’s commitment to reshaping its portfolio, focusing on higher-margin assets, and maximizing value for shareholders.
