Barrick Gold Corp.’s goal of reducing its debt load to roughly US$5 billion is within reach, TD Securities said on Wednesday.

While the gold miner’s total debt outstanding was US$9 billion (net debt was US$6.6 billion) in the second quarter of 2016, analyst Greg Barnes noted that asset sales should help Barrick achieve its target.

Applying the potential proceeds from Barrick’s sale of its 50 per cent non-operating interest in the Kalgoorlie mine in Australia, and its 64 per cent stake in Acacia Mining Plc, Barnes estimates the company could reduce its net debt to approximately US$4 billion (US$6.5 billion total).

The analyst also thinks Barrick could use some of its current US$2.44 billion cash balance, along with incoming free cash flow, to trim its overall debt to US$5 billion sometime in 2017.

He acknowledged that the Acacia stake could be sold in several steps.

Barnes pointed out that a Barrick without Kalgoorlie and Acacia would still produce between 4 million and 4.5 million ounces per year.

“In our view, this means that the production ‘cliff’ that has many investors concerned, could be in reality more of a valley than a cliff, and one that can be address from projects on hand,” the analyst said in a research note.

He maintained his buy recommendation and US$26 price target on Barrick shares, which implies upside of roughly 20 per cent.