March 18th, 2025 | 07:20 CET
Barrick Gold, Golden Cariboo, Alamos Gold – Gold stocks on the verge of a breakout
Last week, history was made on the stock market. For the first time, the price of gold rose above the magical mark of USD 3,000 per troy ounce. Escalating trade wars, the announcement of punitive tariffs, and the continued geopolitical uncertainty fueled demand for the yellow precious metal. The primary beneficiaries of this boom are gold producers and exploration companies, which, however, are lagging in terms of price performance against the strike price and, therefore, have a high catch-up potential.
time to read: 3 minutes
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Author:
Stefan Feulner
ISIN:
BARRICK GOLD CORP. | CA0679011084 , GOLDEN CARIBOO RESOURCES LTD | CA3808134025 , ALAMOS GOLD (NEW) | CA0115321089
Table of contents:
"[...] Our projects are at the initial, high reward exploration stage. [...]" Humphrey Hale, CEO, Managing Geologist, Carnavale Resources Ltd.
Author
Stefan Feulner
The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.
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Barrick Gold – When will the starting signal be given?
The gold price is hitting one high after another, but gold stocks, even the world's largest producers, Barrick Gold and Newmont, cannot keep pace here, at least not yet. The price of Barrick shares, for example, is still around 67% below its peak of USD 31.22.
In terms of chart patterns, the stock is currently struggling with the downward trend established since August 2020 at USD 18.70, which has been reached but not yet sustainably broken. The stock is receiving support from the Relative Strength Index (RSI), which is at a neutral 57 points and still has significant room to rise. The trend follower MACD also switched to the green area and is currently at "Buy". If the downward trend is overcome, the next short-term target would be the horizontal resistance at USD 21.35.
The figures for the fourth quarter showed a significant recovery and were above analyst consensus. The giant produced 1.08 million ounces of gold and 64,000 tons of copper. Over the year as a whole, 3.91 million ounces of gold and 195,000 tons of copper were mined. Production costs in the final quarter were USD 1,451 per ounce, with an annual average of USD 1,484.
Net income rose 69% to USD 2.14 billion, while adjusted earnings increased by 51% to USD 2.21 billion. EBITDA climbed 30% to USD 5.19 billion. Free cash flow reached USD 501 million in the fourth quarter and USD 1.31 billion for the full year.
Golden Cariboo – Up-and-coming explorer in the Cariboo belt
The explorer Golden Cariboo, valued at CAD 7.56 million, is still largely undiscovered. The Canadians have focused on identifying, acquiring and developing gold projects in the historically significant Cariboo Mining Division in British Columbia, where they own deposits covering 94,899 ha.
The Company's main property is the Quesnelle Gold Quartz Mine, a historic site with proven gold deposits. The mine produced approximately 2,048 tons of ore with a grade of 3.14 g/t gold and 4.18 g/t silver between 1932 and 1939.
Last year, a new high-grade discovery was made in the form of the Halo Zone, which could catapult the Company into higher spheres. Initial drilling was carried out as part of the 2024 exploration program and led to the discovery of 1.77 g/t gold over 136.51 m near the surface in drill hole QGQ24-13. Subsequent drill holes confirmed a large and continuous gold zone with 0.80 g/t gold over 204.85 m in hole QGQ24-14 and 0.30 m over 452.51 m in hole QGQ24-17. In addition, further drill holes, the results of which are still pending, contain visible gold.
Golden Cariboo Resources plans to expand its exploration activities significantly in the current fiscal year. The Company intends to carry out an extensive drilling program with a total length of 7,500 meters, spread over up to 25 new drill holes. This program will be supplemented by targeted trenching and sampling to better understand the structural controls on gold mineralization. In addition, airborne geophysical surveys, including VTEM, magnetics, and LiDAR, are planned to identify new drill targets.
Alamos Gold – Outperforming the gold price
One company that has significantly outperformed the base price is Alamos Gold. Since the Corona low in March 2020, the stock has performed by a whopping 660% and, like the gold price, is at its historic high. The producer, valued at CAD 15.27 billion, operates several gold mines, mainly in North America, including the Young-Davidson and Island Gold Mines in Northern Ontario and the Mulatos Mine in Mexico.
In the past fiscal year, Alamos Gold produced 567,000 ounces of gold compared to 529,300 in 2023. Production costs of USD 1,281 per ounce were higher than a year earlier when USD 1,160 per ounce was mined. However, Alamos has a significantly higher margin than Barrick Gold.
Revenues also increased significantly from USD 1.023 billion to USD 1.346 billion. Adjusted net income amounted to USD 328.9 million, compared to USD 208.4 million in the previous year. For the current fiscal year, the Canadians are planning production of between 580,000 and 630,000 ounces, with all-in sustaining costs of a relatively low USD 1,250 and USD 1,300 per ounce of gold.
Barrick Gold could accelerate its upward momentum with a breakout from the downtrend. Alamos Gold is going from strength to strength. The exploration company Golden Cariboo could significantly increase its market capitalization with the discovery of the Halo zone.
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.
In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
For this reason, there is a concrete conflict of interest.
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