Street Calls of the Week
TORONTO - Barrick Mining Corporation (NYSE:B)(TSX:ABX), a mining giant with a market capitalization of $57.9 billion and strong financial health according to InvestingPro metrics, announced Monday it has reached an agreement to sell its Tongon gold mine and certain exploration properties in Côte d’Ivoire to the Atlantic Group for up to $305 million.
The transaction includes $192 million in cash consideration, with $23 million representing a shareholder loan repayment due within six months of closing. An additional $113 million in contingent payments could follow, based on gold prices over 2.5 years and resource conversions over 5 years. The deal aligns with Barrick’s strong liquidity position, reflected in its healthy current ratio of 3.21 and annual revenue of $13.82 billion.
Atlantic Group, a privately held Pan-African conglomerate founded 48 years ago by an Ivorian entrepreneur, operates across 15 African countries with interests in financial services, agriculture and industry.
The Tongon mine, which began gold production in 2010 and was originally scheduled for closure in 2020, has generated over $2 billion for the Ivorian economy through taxes, infrastructure development, salaries and payments to local suppliers, according to the press release.
"Proceeds from the sale will be used to further strengthen Barrick’s balance sheet and support our commitment to continue to deliver returns to our shareholders," the company stated. With a current dividend yield of 1.77%, Barrick maintains its focus on shareholder value. InvestingPro subscribers can access 15 additional key insights about Barrick’s financial performance and market position.
The acquisition will be completed through the purchase of Barrick’s interests in two Ivorian subsidiaries that hold the mine and exploration permits.
The transaction is expected to close in late 2025, subject to customary conditions including approval by the Government of Côte d’Ivoire.
TD Securities Inc. and Treadstone Resource Partners are serving as financial advisors to Barrick, with Lawson Lundell LLP acting as legal counsel.
In other recent news, Barrick Mining Corporation has announced significant transactions involving its assets. The company agreed to sell its Hemlo Gold Mine in Canada to Carcetti Capital Corp. for up to $1.09 billion. This deal includes $875 million in cash, $50 million in shares of the newly named Hemlo Mining Corp., and potential additional payments contingent on gold production and prices over the next several years. Additionally, Barrick has agreed to sell its Alturas Project in Chile to a subsidiary of Boroo Pte Ltd for $50 million in cash. The sale also includes a 0.5% net smelter return royalty on gold and silver production, which Boroo can opt to repurchase within four years for $10 million. These transactions reflect Barrick’s ongoing strategy to optimize its portfolio and focus on its core assets. Both sales are expected to bring substantial cash inflows to the company, enhancing its financial flexibility. These developments are part of Barrick’s broader efforts to streamline operations and maximize shareholder value.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.