Barrick Gold continues to refine its asset portfolio, converting non-core holdings into capital and future revenue streams. The company’s recent divestiture of the Mercur gold project in Utah to Revival Gold exemplifies this disciplined approach, occurring alongside notable shifts in institutional investor interest that align with the stock’s current strength.
Institutional Interest Signals Confidence
Recent 13F filings reveal fresh institutional positioning in Barrick Gold. A prominent new entry is Orion Portfolio Solutions LLC, which established a position by acquiring approximately 72,737 shares valued at around $1.51 million. This move by a professional asset manager coincides with a period where gold prices are testing new support levels, suggesting a view that Barrick’s current valuation presents an attractive opportunity. Such targeted accumulation by institutional investors often carries weight, especially during traditionally quieter retail trading periods around the holidays.
Mercur Project Sale: A Capital-Light Exit
On December 22, Barrick formalized its strategic exit from the long-dormant Mercur exploration project. Revival Gold exercised its option to acquire Barrick’s complete interest in the asset.
The transaction is designed to generate both immediate and contingent future revenue:
Should investors sell immediately? Or is it worth buying Barrick?
- Total Deal Value: $20 million
- Upfront Payment: $5 million upon closing, anticipated in April 2026.
- Contingent Payments: $15 million in success-based milestone payments, delivered in three equal installments on the anniversaries of the project’s commercial production start.
- Retained Royalty: Barrick will retain a 2% Net Smelter Return (NSR) royalty on the project.
This deal transforms an exploration asset outside Barrick’s core focus into cash and a potential future, low-cost royalty stream. It eliminates any future operational risk or capital requirement for Barrick while preserving exposure to potential upside should Revival Gold successfully bring Mercur into production. The structure underscores management’s commitment to prioritizing Tier-1 mines and maintaining capital discipline in project selection.
Fundamentals and Valuation Context
The company’s fundamental backdrop remains supported by a reliable shareholder return policy. On December 15, Barrick paid its quarterly dividend of $0.175 per share, which annualizes to a $0.70 per share payout.
Trading with a price-to-earnings ratio of approximately 21.6, Barrick sits below the historical average valuation of many quality producers in the sector. This is particularly notable given the company’s ability to maintain stable margins within a high-cost operating environment. The current share price of €39.07 is near its 52-week high, reflecting a strong performance over recent months.
Strategic Outlook
The overall picture is coherent. The sale of the Mercur project streamlines the portfolio, strengthens the balance sheet, and secures potential upside through a royalty agreement. Simultaneously, the new investment from Orion Portfolio Solutions reinforces institutional interest in this very strategy—a focused approach on high-return core operations, complemented by capital-light participation in non-core assets. Moving forward, the key will be Barrick’s continued adherence to this disciplined line and what further portfolio decisions may follow.
Ad
Barrick Stock: Buy or Sell?! New Barrick Analysis from December 23 delivers the answer:
The latest Barrick figures speak for themselves: Urgent action needed for Barrick investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from December 23.
Barrick: Buy or sell? Read more here...
