Barrick Mining Sheds Peruvian Project as New CEO Prepares for First Earnings Test

Barrick Mining sells La Joya stake to Chakana Copper, slows Reko Diq project due to security risks, and boosts Lumwana output as new CEO prepares first quarterly report.

Barrick Mining is navigating a period of dual momentum — divesting smaller exploration assets while grappling with operational headwinds at a flagship project — just days before its new chief executive presents his inaugural quarterly results.

The Canadian miner has sold its majority stake in the La Joya exploration project in Peru to Chakana Copper, a fellow Canadian exploration company. In exchange, Barrick will receive approximately 4.1 million common shares in Chakana, representing an 8% stake, along with a 2% net smelter royalty on production from the concessions. The transaction, which requires approval from the TSX Venture Exchange, aligns with Barrick’s strategy of shedding smaller assets to focus on long-life Tier-1 operations.

Chakana Copper is no stranger to the ground. The company has been exploring the concessions in Peru’s Ancash province since July 2018 under an option agreement, targeting copper-gold porphyry systems and epithermal precious metal deposits roughly 35 kilometers south of Barrick’s Pierina gold mine. Certain target zones, including the Mega-Gold center, already hold permits for additional drilling.

The divestiture marks another step in Barrick’s transformation, which included the May 2025 rebranding from Barrick Gold to Barrick Mining Corporation as the company deliberately builds a broader copper portfolio alongside its traditional gold business.

Yet that copper push faces a significant test in Pakistan. Barrick has slowed development at the Reko Diq copper-gold project, extending its review of the facility to mid-2027 due to rising security risks. The original target for first production was late 2028. The company now expects substantial budget overruns on the project, which it had previously estimated would require up to $9.6 billion in investment for the first two phases.

The picture is brighter in Zambia. The expansion of the Lumwana mine is running ahead of schedule, prompting Barrick to raise its 2025 copper production guidance. The upgrade will double processing capacity and extend the mine’s life to 2057, with average annual output of 240,000 tonnes of copper.

Barrick’s stock has reflected the mixed signals. Trading at roughly C$55, the shares have fallen 23% from their January record high. A softening gold price — currently around $4,575 per ounce — has added pressure, as geopolitical tensions fuel energy costs and reignite inflation and interest-rate concerns, diminishing the appeal of non-yielding precious metals.

Despite the recent slide, analysts remain broadly constructive. CIBC trimmed its price target to $63 but maintains a buy rating, calling current levels a solid entry point. The consensus among 15 analysts leans toward buying, with an average target near $60. The company’s fundamentals support that view: Barrick generated nearly $4 billion in free cash flow last year and raised its quarterly dividend to 17.5 US cents per share.

The coming days bring pivotal milestones. Barrick holds its virtual annual general meeting on May 8, followed by new CEO Mark Hill’s first earnings release on May 11. Analysts expect a sharp profit jump. Meanwhile, management is preparing a strategic spin-off of the company’s North American portfolio, targeting an initial public offering in the second half of 2026 that could fundamentally reshape Barrick’s valuation structure.