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$1 Billion Gold Mine Deal: Inside Canada's Next Top 10 Producer | Jonathan Awde - Hemlo Mining

The Deep Dive Jul 7, 2026

Summary

The guest calls gold's roughly 30% pullback a healthy entry point, with the US debt thesis unchanged and prices still well above his cost basis.

Hemlo Mining raised over US$1 billion to buy the Hemlo mine from Barrick, betting an underinvested historic asset can be transformed with focused capital.

A 130,000-metre drill program, about ten years of Barrick's prior drilling in one year, converts inferred (lowest-confidence) resources and pursues growth.

The mill runs at 38% of its 10,000-ton-per-day capacity; management is pushing toward 6,000 tons per day, roughly 200,000 ounces annually.

Management says the 2027 life of mine study (a technical blueprint for future output) will outline 6,000-10,000 tons per day for over two decades.

Key points on Barrick Mining

  • Awde says Barrick sold Hemlo, about 5% of its global production, as a non-core asset that failed its tier one/tier two criteria, since spending $100-200 million to go from 140,000 to 200,000 ounces would not move the meter.
  • Awde argues Barrick timed the sale to the gold-price uptick while prioritizing Fourmile and Reko Diq in Pakistan.

Jonathan Awde's takeaways

  • Top takeaway Argues the gold pullback, which he ties to US strikes on Iran and puts at almost 30% off the peak as of the interview, changes nothing because the US debt situation is intact, and calls it a healthy entry point for generalist investors.
  • Notes gold is almost $1,000 per ounce above where it stood when his team bought the mine, leaving the company well positioned.
  • Contends Hemlo was underinvested for years and that 12-18 months of focused spending can turn it back toward its historical 250,000-300,000 ounces per year.
  • Frames the 2027 technical study as the re-rate catalyst: 6,000-10,000 tons per day for more than two decades, roughly 20 years of mine life versus the typical 6-9, and a top-10 Canadian gold mine.
  • Points to execution since acquisition: $130 million deployed in 2026, $75 million of debt repaid, new equipment ordered, a royalty bought back, and senior hires including a new GM and VP of technical services.

Steve Hyland's takeaways

  • Top takeaway Interviews Awde on the gold pullback, the Hemlo acquisition from Barrick, mill-throughput headroom, the drill program, and the next 12 months' milestones.
  • Notes the channel has covered Hemlo before and closes by calling it a historic mine in Canadian mining history, hoping to revisit the re-rate a year on.

Robert Quartermain's takeaways

  • Top takeaway Awde says the Hemlo deal began with an April 2025 call from Quartermain, who asked him to lead a team to acquire the mine.
  • Says the acquisition thesis was informed by Quartermain together with CEO Jason Kosick's technical team.