A MAJOR DEVELOPMENT IN GOLD! Will Newmont acquire Barrick Mining? Formation Metals and RENK also in focus!

Formation Metals: Is the share price jump just the beginning?

Formation Metals' share price surged yesterday following a successful financing round. The oversubscribed capital raise brought in CAD 8.26 million, enabling the Company to fully focus on expanding resources at its N2 Gold Project in Quebec. Located in the Abitibi Belt, one of the world's most attractive gold regions, the project hosts a historical resource of approximately 870,000 ounces of gold. Previous drilling in the high-grade "RJ" zone has returned up to 51 g/t gold.

CEO Deepak Varshney stated in an interview that the resource could potentially expand to 3-5 million ounces, making Formation Metals an attractive takeover candidate. The Company is currently debt-free and has approximately CAD 12.7 million in working capital following the recent capital increase. Fully financed through 2027, Formation Metals can now pursue its goal of developing a near-surface multi-million-ounce deposit at full speed. The Company is also increasingly focusing on other base metals. A re-evaluation of historical drill cores has revealed significant copper and zinc grades.

For the 2025 drilling season, the Company plans to explore the northern areas of the project with additional geophysical surveys and follow-up drilling, targeting a total of 20,000 meters in the coming months. Investors can therefore expect a steady stream of news and updates.

Barrick Mining: Newmont applies pressure

It would be a bombshell: Is Newmont preparing to acquire its longtime rival, Barrick Mining? According to a report by Bloomberg, this is entirely possible. The focus is on the joint venture Nevada Gold Mines. Newmont, previously a minority shareholder with a 38.5% stake, reportedly wants to take control of the Company.

Nevada Gold Mines was founded in 2019 and is now the largest gold producer in North America, operating over 20 mines in northern Nevada. For Barrick, Nevada Gold, with its mega mines Cortez and Carlin Complex, is part of its core portfolio. The rest of Barrick's core assets otherwise only include the Reko Diq copper-gold project in Pakistan and mines in the Dominican Republic and Mali. The Hemlo mine in Canada was recently sold for USD 1.09 billion.

*According to Bloomberg, Newmont would prefer to acquire Barrick's entire stake in Nevada Gold Mines. But there is also a plan B: the complete takeover of its old rival. However, Newmont has no interest in Barrick's international projects. These projects would then have to be sold or floated separately on the stock market. It is not known whether negotiations with Barrick are already underway.

The Bloomberg report is a new example of how the takeover merry-go-round in the gold sector is likely to spin faster next year at the latest. Barrick had actually announced its intention to focus on organic growth and its own projects. However, to fend off a takeover by Newmont, it could be forced to make acquisitions. This is likely to bring explorers such as Formation Metals and established producers into focus.

RENK: Soon below EUR 60?

Alongside the gold price, defense stocks are currently consolidating. RENK, for example, was trading at EUR 67 yesterday, well below its annual high of EUR 92. From mwb's perspective, the stock could still fall further, with the fair value recently revised from EUR 65 to EUR 58.

The decline in valuation reflects slightly reduced profit assumptions due to higher production costs and the shift toward wheeled vehicles in OEM orders - a segment with significantly lower margins for RENK. In the medium to long term, upside potential depends heavily on new tracked vehicle programs and strategic goals. These are to be presented at the Capital Markets Day on November 20.

By 2027, analysts expect revenue growth to reach EUR 1.88 billion, with an EBIT margin of around 19%. RENK benefits from high defense demand in Europe, recurring service revenues (~30% of revenue) and a dominant position in drives for tracked vehicles. Opportunities exist in areas such as hybrid drives. Overall, RENK remains a strategically important defense supplier with robust order intake, but it faces short-term production risks and a valuation that already reflects significant optimism.

A takeover of Barrick Mining would be a major shake-up. If this happens, it is likely to trigger a significant wave of takeovers, potentially extending to explorers. Yesterday's surge in the share price of Formation Metals indicates that the Company is on the right track. Based on drill results, shareholders can look forward to a steady stream of news. At RENK, the consolidation may not be over yet.