Built on Sand? Barrick Mining Under Pressure, Rio Tinto Facing Headwinds, and North Arrow Minerals in a Strong Position

Barrick Mining Drives the Transformation Forward

Barrick Mining is breaking new ground with the goal of reducing its valuation discount relative to its closest competitors. Despite its excellent financial strength and record-breaking operating cash flows, its valuation remains low due to the risk premium associated with projects in geopolitically unstable regions such as Mali and Pakistan. To allow the market to value its North American projects independently of these risks, management plans to take the new subsidiary, North American Barrick, public by the end of 2026. However, this ambitious plan is facing resistance from joint venture partner Newmont, which accuses Barrick of unlawfully withdrawing personnel and heavy equipment. The spin-off of Barrick's North American assets is likely to make further headlines in the coming months. Investors should watch the process from the sidelines.

Rio Tinto Makes Radical Cut: End of Diamond Business

Under the leadership of new CEO Simon Trott, Rio Tinto is undergoing a realignment. Key measures include a complete withdrawal from the diamond industry, cost-cutting in the iron ore business, and a massive expansion of copper and lithium projects. At the end of March this year, the Diavik diamond mine in Canada's Northwest Territories ceased operations after its reserves were completely depleted. This marked the end of an era for Rio Tinto. In light of the iron ore market, Rio Tinto signed two non-binding letters of intent with BHP to jointly mine adjacent deposits and make better use of existing infrastructure.

In the lithium sector, the company is positioning itself as an emerging market leader through its Rio Tinto Lithium division. For the Rincon project in Argentina, a financing package of USD 1.175 billion was agreed upon in March with various lenders to prepare for the production of 60,000 metric tons of lithium annually by 2028. Despite this expansion, Rio Tinto faces significant criticism from environmental activists and indigenous groups. A key point of contention is the planned Oak Flat copper project in Arizona, which threatens to destroy a site sacred to Native Americans. Rio Tinto is also likely to face continued headwinds.

North Arrow Unlocks a Desert Treasure in Botswana

North Arrow is the prime example of a junior explorer that continually adapts to changing conditions. The management team, led by CEO Eira Thomas and President John P. Armstrong, who was appointed in February, has recognized that the targeted sale of marginal projects is bringing capital into the company's coffers, thereby reducing dilution for existing shareholders. North Arrow Minerals' flagship project is the Kraaipan Gold project in Botswana, which comprises three mineral concessions covering an area of 724 km² and borders the well-known Kraaipan greenstone belt to the north. The South African portion of the belt is home to Harmony Gold's Kalgold Mine, which has been in production for over 30 years. North Arrow has entered into an earn-in agreement with Rockman Resources, under which the company can secure a 60% interest in the project by incurring exploration expenditures of USD 5 million.

The greatest geological challenge in exploring the belt is the widespread sand overburden. The team of geologists is addressing this with an innovative approach: over 85% of the project area has already been surveyed using high-resolution UAV magnetic sensors, while a highly mobile RC drilling rig enables the cost-effective drilling of three to five shallow holes per day. In March of this year, this approach confirmed the presence of continuous gold mineralization. Among other results, exploration in the bedrock yielded 7 m grading 1.99 g/t Au and 9 m grading 1.23 g/t Au. In addition, composite samples from the sand cover yielded spectacular grades of up to 29 g/t Au over 2 m. A surface sample from the 2025 campaign also returned 3.28 g/t Au.

Strong Partners and a Solid Starting Point

For a junior company, North Arrow Minerals has prominent shareholders: well-known mining investor Ross Beaty, Lukas Lundin through Zebra Holdings, and Thomas Kaplan through the Electrum Group are among the company's most significant anchor investors. To increase the tradability of the shares and raise its profile, management recently announced the uplisting of the shares to the OTCQB Venture Market in the US. Backed by strong shareholders, a highly promising project, and a favourable environment for gold companies, North Arrow Minerals offers an intriguing opportunity for investors with a higher risk tolerance.