Barrick Gold Corporation ABX has entered into a deal to sell the Cowal mine in New South Wales, Australia to Evolution Mining for $550 million in cash on closing. The transaction is expected to conclude in the third quarter of 2015, subject to customary closing conditions.

The sale is in sync with Barrick’s strategy of creating long-term value for shareholders as it would contribute considerably to the company’s debt reduction target and allow it to focus on expanding the geographic footprint of its portfolio. The proceeds from the divestment of Cowal mine will be utilized for debt repayment. The sale will also result in reduced general and administrative costs as Barrick completes the closure of its office in Perth, Australia.

Credit Suisse is acting as financial advisor to Barrick on the transaction. Davies Ward Phillips & Vineberg LLP and Herbert Smith Freehills LLP are serving as the company’s legal counsel.

Barrick Gold’s adjusted earnings (excluding one-time items) for the first quarter of 2015 plummeted to 5 cents per share from 20 cents per share in the year-ago quarter and also missed the Zacks Consensus Estimate of 10 cents. Lower pricing for both gold and copper along with reduced gold production led to the decline in earnings.

Revenues fell around 15.2% year over year to $2,245 million in the reported quarter and missed the Zacks Consensus Estimate of $2,260 million. Average realized price of gold decreased 5.1% year over year to $1,219 per ounce. All-in costs increased 9.2% to $1,024 per ounce, and all-in sustaining costs (AISC) rose roughly 10.6% to $927 per ounce in the reported quarter.

Barrick remains focused on achieving its overall target of $30 million in savings from reduced general and administrative expenditures and overhead costs in 2015, reaching $70 million in annualized savings by 2016.

The company is also working toward reducing debt by at least $3 billion by the end of 2015, through asset sales and other initiatives in progress.

Currently, Barrick carries a Zacks Rank #3 (Hold).

Better-ranked gold mining companies include Primero Mining Corp. PPP, AngloGold Ashanti Ltd. AU and Richmont Mines Inc. RIC. While Primero Mining sports a Zacks Rank #1 (Strong Buy), AngloGold and Richmont Mines hold a Zacks Rank #2 (Buy).

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