Barrick Gold Corp. is exploring the sale of its Tongon gold mine in Côte d'Ivoire as part of a strategy to offload its aging assets while gold prices are reaching record highs. The mine, which is set to cease operations by 2027 due to declining resources, accounted for approximately 5% of Barrick’s total gold production last year, producing 204,000 ounces. Barrick owns nearly 90% of Tongon, with the remaining shares held by the Côte d'Ivoire government and local investors.
To facilitate the sale, Barrick has partnered with Toronto-Dominion Bank to identify potential buyers and gather bids since late November. Both Barrick and TD have declined to comment on the sale. This move aligns with a trend in the gold mining sector where producers are seeing increased valuations due to record-high gold prices, driven by central-bank buying, geopolitical uncertainties, and interest-rate cuts. Barrick's competitor, Newmont, successfully sold its Akyem mine in Africa for $1 billion to Zijin Mining Group, far exceeding its initial target for asset sales.
Barrick previously looked into selling Tongon in 2019 but did not find a buyer. However, the company has reiterated that Tongon is no longer central to its strategy and sees selling the asset as a way to strengthen its portfolio and reduce costs by over $50 per ounce. Sebastiaan Bock, Barrick’s COO for Africa and the Middle East, mentioned that disposing of Tongon would enhance the quality of the company’s overall asset portfolio.
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