Canadian miner Barrick Gold Corp (TSX: ABX) (NYSE: GOLD) has decided to find a buyer for the Hemlo mine in Ontario.
Announced on Thursday, this is part of a greater strategy wherein Barrick is leaving behind all of its non-core assets in order to focus on its high margin, high potential producers.
This strategy includes a greater emphasis on Tier One gold and copper operations. Further, these are characterized by long life spans and lower production costs. The sale of Hemlo aligns with this approach, as the mine produced approximately 143,000 ounces last year, representing about 3.5 per cent of Barrick’s total output.
Additionally, Barrick Gold hired the Canadian Imperial Bank of Commerce to oversee the sale process and identify potential buyers. This marks the company’s exit from Canada, as Hemlo is its final remaining asset in the country.
Over its 30-year lifespan, Hemlo has yielded more than 21 million ounces of gold. Furthermore, in 2024 alone, it produced 143,000 ounces—roughly 3.45 per cent of Barrick’s total annual output.
Barrick currently operates 13 gold mines and three copper mines, along with exploration projects in 18 countries.
Subsequently, Barrick aims to capitalize on high gold prices by selling assets at attractive valuations. This is evident in its recent sale of its 50 per cent stake in Alaska’s Donlin Gold Project. It sold earlier this week for USD$1.1 billion.
Furthermore, Barrick has reduced its North American presence since merging with Africa-focused Randgold Resources, founded by CEO Mark Bristow.
Read more: Equinox Gold acquires Calibre Mining for $2.6B
Read more: Calibre Mining beats updated gold production guidance with 242,487 ounces
A growing trend of consolidation in the gold producer sector
Over the past two years, the gold mining sector has experienced significant consolidation, with several notable mergers and acquisitions shaping the industry’s landscape.
For example,Newmont Corporation (TSE: NGT) (NYSE: NEM) has sold non-core gold assets in Northern Ontario. It sold the Musselwhite Mine to Orla Mining Ltd (TSE: OLA) (NYSEAMERICAN: ORLA) and the Porcupine complex in Timmins to Discovery Silver.
Meanwhile, in November 2023, Calibre Mining Corp. (TSE: CXB) (OTCMKTS: CXBMF) announced acquired Marathon Gold and its top-tier Valentine Mine in Newfoundland in a CAD$345 million all-stock deal.
Calibre had completed the acquisition by January of 2024, delisting Marathon’s shares and integrating its assets. Subsequently, a year later in February 2025, Equinox Gold Corp. (TSE: EQX) (NYSE American: EQX) proposed an all-stock acquisition of Calibre for CAD$1.8 billion.
The merger aims to create a major Americas-focused gold producer, combining Equinox’s operations in Canada, Mexico, Brazil, and the U.S. with Calibre’s assets in Nevada and Nicaragua.
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