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TORONTO - Barrick Mining Corporation (NYSE:B)(TSX:ABX), a $39.8 billion mining giant with annual revenues of $13.3 billion, announced Friday it has agreed to sell its Alturas Project in Chile to a subsidiary of Boroo Pte Ltd for $50 million in cash, plus a 0.5% net smelter return royalty on gold and silver production. According to InvestingPro analysis, Barrick’s stock is currently trading near its 52-week high, with a robust 27% gain over the past six months.
The royalty will terminate after 2 million ounces of gold and gold-equivalent have been produced, with Boroo having the option to repurchase it within four years for $10 million. The transaction involves Boroo acquiring all shares of Compañía Minera Salitrales SpA, the Barrick subsidiary holding the project.
Mark Bristow, Barrick’s president and chief executive, said the deal allows the company to "exit Alturas at an attractive valuation" while focusing on its strategy of developing long-life, sustainable Tier One gold and copper operations.
"This is another good example of an instance where an asset we own might be better suited in the hands of others while we pursue our priority portfolio of Barrick-managed growth projects," Bristow said, according to the press release.
Barrick plans to use proceeds from the sale to strengthen its balance sheet, invest in future projects and support shareholder returns. The company already maintains a strong financial position, with InvestingPro data showing a healthy current ratio of 2.87 and a conservative debt-to-equity ratio of 0.19, indicating efficient capital management.
Despite the sale, Barrick confirmed Chile remains an important jurisdiction for the company, where it maintains interests in the Zaldivar copper mine and the El Alto and Norte Abierto projects.
The transaction is expected to close within the third quarter of 2025, subject to customary closing conditions.
Barrick, which operates in 18 countries across five continents, describes itself as the largest gold producer in the United States with six of the world’s Tier One gold mines in its portfolio. InvestingPro subscribers have access to over 10 additional exclusive insights about Barrick’s financial health, which currently rates as "GREAT" according to comprehensive analysis of multiple financial metrics.
In other recent news, Barrick Mining has removed its Mali gold complex from its 2025 output forecast. This decision comes amid a two-year dispute with Mali’s government over new mining legislation. The Loulo-Gounkoto gold complex, a significant asset for Barrick in Africa, has had its operations suspended since January. The military-led government in Mali has blocked gold exports, detained staff, and seized three metric tons of stock while negotiations for a new mining contract continue. Additionally, Barrick Mining has announced a change to its ticker symbol on the New York Stock Exchange. The company will now trade under the single-letter ticker ’B’, a move that highlights its leadership in the gold and copper mining sector. Mark Bristow, President and CEO of Barrick, marked this occasion by ringing the Opening Bell at the NYSE. The company’s strategy includes a focus on both gold and copper, aiming to align its branding with its business goals and mission.
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