Barrick Mining and Kobo Resources: Gold as security – Occidental Petroleum: Energy as opportunity

Barrick Mining – In the spotlight – Gold shines

The gold rally shows no signs of slowing down. Driven by geopolitical tensions and expectations of looser monetary policy in the US, the precious metal recently climbed to new record highs above USD 4,300. A key price driver is the unabated buying by global central banks, which purchased over 415 tons of gold by October 2025 alone, marking the strongest inflow in years. In this environment, the mining sector naturally benefits. However, a giant like Barrick Mining is currently under particular scrutiny, as operational challenges lurk behind the shiny figures.

While Barrick is benefiting financially from high gold prices, with revenue rising significantly in the second quarter, the outlook is clouded by significant issues in Mali. The loss of control over the Loulo-Gounkoto mine led to a write-down worth billions. A report on October 10 has now brought some movement. The provisional administration on site announced that blasting operations in the underground mine would resume. This is a small but important signal of a possible gradual normalization, even though negotiations with the government remain difficult.

For investors, Barrick is a mixed bag. The Company has a robust base with high liquidity and a solid production profile for the full year. However, the sudden change in leadership at the top of the group raises questions about strategic continuity. Developments in Mali remain a critical factor. If the new leadership successfully manages these risks, Barrick can fully capitalize on the current tailwind. Otherwise, operational challenges could slow the precious metal's surge. The stock is currently trading at USD 33.33.

Kobo Resources – A gold project with substance

With gold prices above USD 4,000, investors should also take a look at promising explorers, as they can offer significant upside potential. This includes Kobo Resources, which has already attracted the attention of gold investors with its flagship Kossou project in Côte d'Ivoire. The project is located in an established gold belt in West Africa, just a few kilometers from the capital, Yamoussoukro. This strategic proximity to existing infrastructure, including an active mine in the immediate vicinity, is a decisive operational advantage. The focus here is on the systematic exploration of several promising zones along an extensive geological structural corridor. The goal is clearly defined with the preparation of an initial resource estimate.

The latest drilling results on the Koussou property underscore the potential. A highlight was the 17.0 m intersection grading 3.87 g/t gold in the Road Cut Zone. Such veins confirm the continuity of mineralization. In parallel, the Jagger Zone provided further encouraging data, with gold-bearing structures now being traced to depths of over 240 m. These consistent results support the Company's geological model, indicating a robust, deep-reaching system. The ongoing campaign aims to further connect and expand these zones.

Beyond Kossou, Kobo has another exploration asset in the same promising geological belt with the Kotobi project. Although Kotobi is at an earlier stage, initial gold anomalies have already been identified in soil samples. The overall opportunity for Kobo lies in the sum of its parts, with Kossou rapidly developing into a substantial project that could attract the attention of major gold producers, while Kotobi offers longer-term upside potential. In a mining-friendly jurisdiction such as Côte d'Ivoire, this combination could be of interest to investors looking to capitalize on a successful exploration story. The stock is currently trading at CAD 0.30 and is likely to have significant upside potential after the initial resource estimate.

Occidental Petroleum – Strategic restructuring under scrutiny

Occidental Petroleum's latest transaction has divided the investment community. The Company is selling its chemical division, OxyChem, to Berkshire Hathaway for USD 9.7 billion. For CEO Vicki Hollub, this is the final step in a long-standing transformation towards a leaner oil and gas company. A large portion of the proceeds, approximately USD 6.5 billion, will go directly toward debt repayment. This brings OXY significantly closer to its stated debt target of less than USD 15 billion and reduces interest expenses by over USD 350 million annually. This financial respite could create scope for share buybacks.

However, the sale has a noticeable downside. Occidental is giving up a profitable and comparatively stable cash cow. The chemicals division was an important buffer against oil price volatility. The market's reaction, a sharp drop in the share price, reflects skepticism about whether the sale price was appropriate and whether the loss of this source of income is being taken lightly. Critics also complain that the environmental obligations associated with OxyChem remain with Occidental, which diminishes the attractiveness of the deal.

From a strategic perspective, Occidental is now focusing entirely on its core business, oil and gas production in key regions such as the Permian Basin. The streamlined group is set to become more efficient and investor-friendly. The simplified balance sheet allows management to focus on operational excellence and capital returns. For investors, it remains a gamble as to whether the increased efficiency and focus on fossil reserves can offset the loss of the diversifying chemicals business in the long term. The stock can currently be purchased for USD 40.90.

In uncertain times, tangible assets offer strategic stability. Barrick Mining is benefiting from record gold prices, but must overcome its operational risks in Mali to sustain its upward momentum. Kobo Resources scores as an explorer with its promising Kossou project in a mining-friendly jurisdiction and offers substantial upside potential. Occidental Petroleum, meanwhile, is putting all its eggs in one basket. The sale of its profitable chemicals division streamlines the Company for greater focus, but robs it of an essential pillar of stability.