Barrick Gold Corporation is advancing its portfolio optimization strategy with the divestment of a Utah-based project. This move follows a significant resolution of disputes in Mali and further sharpens the mining giant’s operational focus. Investors responded favorably to the consistent strategic execution, sending shares higher.
Market Reaction and Technical Outlook
The market’s approval was evident in the share price movement, which closed nearly 2% higher at $44.73. From a technical analysis perspective, the equity established a higher low above the $43.00 support level. Market observers now anticipate a test of the resistance near $46.00, which could occur in the final trading sessions of 2025.
Resolving African Uncertainty
This latest sale comes just one month after Barrick reached a pivotal agreement in West Africa. On November 24, the company settled its longstanding dispute with the government of Mali. A payment of approximately $430 million resolved all legal proceedings concerning the Loulo-Gounkoto complex and secured the operation’s long-term licensing. The resolution of this conflict, coupled with the asset sale, allows the company’s operational strength to take center stage once more.
Should investors sell immediately? Or is it worth buying Barrick Mining?
Financial analysts view the dual strategy of minimizing African risk and monetizing non-core assets as beneficial for Barrick’s free cash flow, a positive signal for the upcoming quarterly report.
Terms of the Utah Project Divestment
The company has finalized an agreement with Revival Gold Inc., which has exercised its purchase option for the Mercur project in Utah. The total consideration for Barrick amounts to $20 million. The deal is structured with an immediate cash payment of $5 million, followed by additional contingent payments tied to the commencement of commercial production.
A key long-term benefit for Barrick is the retention of a 2% Net Smelter Return (NSR) royalty. This clause allows the miner to maintain exposure to a favorable gold price environment from the project’s future output without bearing any of the estimated development costs. Revival Gold’s plans for the site target an annual production of roughly 95,000 ounces.
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