BOMBSHELL! RENK, Bayer, Desert Gold! Who has the potential to multiply?

Desert Gold: An opportunity in the gold sector

Desert Gold currently offers an opportunity in the gold sector. Last week, the long-awaited Preliminary Economic Assessment (PEA) for the SMSZ project in West Africa was published. Despite strong prospects, Desert Gold's share price has hardly reacted.

Yesterday, Desert CEO Jared Scharf clarified in an interview with analysts from GBC Research that the study reflects only a fraction of the actual potential. According to this, only around 10% of the current gold resource of 1.1 million ounces was taken into account. Based on a gold price of USD 2,500 per ounce, the PEA calculates an internal rate of return (IRR) of 34% and an after-tax cash flow of USD 71 million. According to Scharf, the IRR is even above 50% at current prices. Thanks to low all-in sustaining costs of around USD 1,350 per ounce, the project has high leverage to the gold price.

The reason for the "small" PEA is that Desert is pursuing a modular processing strategy. Mobile open-pit mining equipment will enable the Company to start production quickly and remain flexible. The current permit allows for the processing of up to 36,000 tons per month – a capacity expansion is possible and could significantly accelerate cash flow.

At the same time, the current gold resource of 1.1 million ounces at the SMSZ project could be significantly expanded. This is because only 5 of the more than 30 known gold zones have been included in the resource estimate to date. Scharf is also optimistic about Desert Gold's second project. Exploration is scheduled to begin after the end of the rainy season in Côte d'Ivoire. Link to interview.

This should keep Desert Gold on track in terms of operations. Analysts at GBC Research see the fair value of the share at CAD 0.425. The security is currently trading at CAD 0.08 and is listed on Tradegate in Germany, among other places.

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RENK: One defense company that delivers

At least one German defense company is already benefiting from the supercycle. RENK posted impressive figures for the first half of 2025 yesterday. The order intake in particular caused jubilation on the stock market, rising by 46.8% to EUR 921 million in the reporting period. Rheinmetall and Hensoldt had previously opened their books, and their order intake had caused disillusionment and led to hopes being pinned on the second half of the year. As a result, RENK shares rose by more than 5% yesterday.

The Company, which is known for its transmissions for the Leopard 2 tank, also posted impressive operating results. Revenue rose by 21.5% to EUR 620 million. Adjusted EBIT climbed by 29.4% to EUR 89 million. With a book-to-bill ratio of 1.5x and a total order backlog of EUR 5.9 billion, visibility for the coming quarters has further improved.

Given this strong performance, the forecast for the current year was (naturally) confirmed. RENK aims to increase revenue to over EUR 1.3 billion (2024: EUR 1.14 billion). EBIT is expected to be between EUR 210 million and EUR 235 million (2024: EUR 189 million).

Bayer: Billion-dollar deal

After uncertainty surrounding Bayer's court cases in the US caused its shares to fall last week, this week has seen a return to optimism thanks to positive developments in the pharmaceuticals division. Bayer shares rose by more than 4% yesterday alone.

The reason: The Leverkusen-based company has signed a licensing deal with Kumquat Biosciences that could be worth billions. The US biotech company specializes in the KRAS signaling pathway. The KRAS signaling pathway is a central "control center" in human cells that regulates how they respond to growth and division signals. It is one of the most frequently disrupted signaling pathways in cancer biology.

Kumquat Biosciences is developing a small-molecule inhibitor designed to specifically block the KRAS G12D mutant. This mutation is particularly common in pancreatic, colon, and lung cancer and is currently difficult to treat medically. IND (Investigational New Drug) approval for the compound was granted by the US FDA in July 2025.

Kumquat intends to conduct the Phase Ia study independently. Bayer will then take over the further development, approval, and marketing of the active ingredient. Bayer could pay Kumquat Biosciences up to USD 1.3 billion in total, but many milestones still need to be achieved.

Desert Gold currently offers a great opportunity in the gold sector. The PEA has not yet triggered the expected price explosion, but a sharp upward move may be imminent. According to GBC Research, a multiplication is possible. After Rheinmetall and Hensoldt disappointed, particularly in terms of order intake, RENK's strong figures were important for the entire industry. Meanwhile, Bayer shares have already delivered a solid performance this year.