A 100% price gain not enough? Barrick Mining, First Majestic Silver, and gold gem Kobo Resources!

Kobo Resources: Shares appear too cheap

The consolidation of the gold price has punished some gold explorers. Kobo Resources is one of them, and this offers opportunities for the share price. Operationally, the Company is fully on track. The latest high-grade gold discoveries are certainly being closely monitored by a neighbor. This neighbor already has a producing mine and could significantly expand its resources by acquiring Kobo Resources.

Kobo is currently advancing two projects in Côte d'Ivoire. The West African country is one of the most stable on the continent. The government is focusing on international mining partnerships and attracting more and more gold companies.

The first resource estimate for the Kossou Gold project is expected as early as next year. The property is located in the established mining region of the Birimian Belt, only about 40 km from the Ivorian capital, Yamoussoukro. A broad-based drilling program is currently underway there to establish the basis for the resource estimate. Results to date indicate extensive gold mineralization, both near surface and at depth, with peak grades of up to 17.30 g/t Au. From the Company's perspective, there are many indications that this gold system is expanding and has significant development potential. Of particular interest to investors: Perseus Mining already operates a producing mine just a few kilometers away – a strategic advantage that could make Kobo an attractive takeover target if successful.

At the same time, the Company reported strong results from the Kotobi Gold project. Four distinct gold-in-soil anomalies were delineated during an initial exploration program on the 301.8 km² license area, with gold grades locally well above 500 ppb and peak values of up to 1,420 ppb Au. Kotobi is located in the central-eastern part of Côte d'Ivoire on folded volcanic sedimentary and metasedimentary sequences and belongs to the Dimbokro-Abengourou Belt – a structurally favorable zone of the West African craton where numerous economically significant gold deposits have already been identified.

Barrick Mining: 100% price gain not enough?

While Kobo Resources is anything but highly valued, the situation is slowly changing for Barrick Mining. The gold and copper group's share price has already gained over 100% in the current year and is trading at almost EUR 35. This is the highest level since 2012 and not far off its all-time high.

Things are also going well for Barrick in other areas. The sale of the Hemlo Gold mine in Canada has been completed. The buyer is Carcetti Capital. The transaction had a volume of USD 1.09 billion. Barrick will receive USD 875 million in cash immediately and up to an additional USD 165 million by 2027, depending on production volumes and the development of the gold price. Barrick intends to use the proceeds to strengthen its balance sheet and pass on a portion to shareholders through dividend payments and share buybacks.

Barrick Mining also appears to be successful again in Africa. Bloomberg reported that the months-long conflict with the Malian government over the Loulo and Gounkoto gold mines has been resolved. According to the report, all charges against the Company, its affiliates, and employees will be dropped. The four employees who were detained will also be released. In addition, the government will end the transitional administration, and Barrick will regain full control.

First Majestic Silver: Shares in demand again

Silver and stocks from the sector are also back on track. Industry heavyweight First Majestic Silver has received tailwinds from several sides in the past two weeks. The price of silver is back above USD 50. First Majestic's stock has also ended its consolidation and is marching toward its October high of over EUR 13. First Majestic is repeatedly cited as one of the primary beneficiaries of the tight physical markets.

A few days ago, management reported in an early warning report on the sale of a total of 1,060,500 shares in its investment company, Silver Dollar Resources. First Majestic is thus reducing a minor position in its portfolio. First Majestic Silver is also performing brilliantly in operational terms. Production rose to around 7.7 million silver equivalent ounces. This development was driven by the acquisition of Gatos Silver and growth in San Dimas in particular. Revenue doubled in the third quarter compared to the previous year to around USD 285 million. Net earnings also reached a new record of USD 43.0 million. In the same quarter of the previous year, a loss of USD 26.6 million had to be absorbed. Although this fell short of the very ambitious analyst estimates, it only had a short-term impact on the share price.

Precious metals are picking up speed again. While basic investments such as Barrick and First Majestic are at annual highs, there are opportunities for catch-up among explorers. Kobo Resources belongs to this group. The Company is impressing with high-grade gold discoveries and growing takeover speculation.