As gold prices hit repeated record highs, Barrick Gold Corporation (NYSE: GOLD, TSX: ABX), the world’s second-largest gold producer, continues to streamline its portfolio by divesting non-core assets to bolster its financial position. On Tuesday, the company announced the sale of its 50% stake in Alaska’s Donlin Gold Project for $1 billion in cash to affiliates of Paulson Advisers LLC (“Paulson”) and NOVAGOLD Resources Inc. (NYSE American, TSX: NG).
Under the agreement, NOVAGOLD holds an option to purchase Barrick’s outstanding debt related to the project for $90 million if exercised before closing, or $100 million within 18 months post-closing. Following the announcement, NOVAGOLD’s shares surged over 20% in New York trading, marking their largest intraday gain since March 2020, while Barrick’s stock dipped 1.6%.
Barrick has been actively shedding non-core holdings, including efforts to sell its Tongon gold mine in Ivory Coast (pending finalization). The Donlin sale underscores its strategy to prioritize core assets while pivoting toward critical metals like copper amid the energy transition. According to its annual report, Barrick’s global portfolio spans 18 countries, with 13 gold mines and 3 copper mines in operation.
Concurrently, Barrick plans to exit its last Canadian mine—the Hemlo operation in Ontario—by engaging CIBC to seek buyers. In 2024, Hemlo produced 143,000 ounces of gold, accounting for just 3.5% of the company’s total output. If sold, this would mark Barrick’s complete withdrawal from Canada, its birthplace, following its 2018 merger with Randgold Resources. Post-merger, the company decentralized its headquarters and reduced its Canadian executive presence.
Located 300 km west of Anchorage, Alaska, the Donlin project boasts 39 million ounces of gold in Measured and Indicated resources at an average grade of 2.24 grams per tonne, positioning it among the world’s largest undeveloped gold deposits. Post-transaction, NOVAGOLD will hold 20% of the project, with Paulson acquiring the remaining 30%, both sharing costs proportionally.
Barrick President and CEO Mark Bristow stated the deal allows an “attractive valuation exit” from non-core assets while enabling partners to advance development. NOVAGOLD Chairman Thomas Kaplan hailed the transaction as a “watershed moment” to unlock Donlin’s value, with plans to update its feasibility study and complete drilling programs this year.
Gold sector dealmaking surges as firms capitalize on soaring prices. Newmont Corp., the top global producer, raked in $4.3 billion from asset sales earlier this year. On Tuesday, China’s CMOC Group announced a C$581 million ($420 million) all-cash acquisition of Canada’s Lumina Gold, while Equinox Gold shareholders will vote Thursday on a $1.8 billion bid for Calibre Mining.
Barrick’s strategic divestments align with broader industry trends, as miners rebalance portfolios to focus on high-potential projects and metals critical to the energy transition.
