BUYING OPPORTUNITY in gold and billion-dollar investment: Barrick Gold, Thunder Gold, BYD

Barrick Gold: Takeovers after poor numbers?

The takeover merry-go-round in the gold sector is likely to start turning quickly soon. This is because the latest quarterly figures from major gold producers such as Newmont and Barrick Gold have been disappointing. There is no sign of any improvement in organic performance, which could lead to companies keeping investors happy by making acquisitions. For example, Barrick Gold is unable to get its costs under control and failed to meet analyst estimates for sales and earnings in Q3. The world's second-largest gold producer reported higher labor and energy costs at mines in the US, Argentina and Africa. This caught investors off guard who had expected record profits due to the record gold price. Following the publication of the figures, Scotiabank, among others, lowered its target price for Barrick shares from CAD 25 to CAD 24. This puts the analysts' fair value at the current price level, making the stock a "Hold".

From the analysts' point of view, the Pueblo Viejo, Turquoise Ridge, and Carlin mines are mainly responsible for the failure to meet expectations. These problems could continue into 2025.

Thunder Gold: Strong project and favorably valued

The problems of the major producers should shift the focus to the explorers. In addition, the consolidation of the gold price offers an interesting buying opportunity. Thunder Gold is a promising candidate. The Company is focused on developing a large-tonnage, low-grade deposits in Canada, a jurisdiction with a strong legal environment. Thunder Gold's main project is Tower Mountain. The 2,500-hectare gold property is located in the province of Ontario, in the eastern center of Canada, bordering the United States. Important for exploration and future gold production: The infrastructure in the region is excellent. A port, the Trans-Canada Highway and access to the rail network are nearby.

Thunder Gold acquired the property in 2020 and has since invested approximately CAD 12 million – incidentally, the current market capitalization is less than CAD 10 million – and drilled 41,000 m. So far, management estimates the gold resource at 1.25 to 1.5 million ounces. The most recent drill samples returned gold grades of 0.75 g to 13.4 g. Further results are expected in the coming weeks. So far, only a small part of the property has been tested. Therefore, the potential is significantly greater.

Thunder CEO Wes Hanson states: "We have chosen to allocate the capital from our recent financing where it will do the most good for our shareholders, which is exploring our 100% owned property that has the potential for a bulk-tonnage gold discovery in close proximity to built and maintained provincial infrastructure. We believe the intrusive series plays an important role in the regional gold distribution within the Shebandowan greenstone belt. We are fortunate to have Tower Mountain, which is the largest exposed intrusive center within a 20 km radius. These results support our contention that selected phases of the TMIC are highly prospective for gold mineralization."

BYD announces billion-dollar investment

And what is BYD doing? After the headlines surrounding punitive tariffs in the EU and a sluggish expansion in Europe, the share price has come back a bit from its year-high of almost EUR 38. However, it did not fall below the EUR 30 mark. The Chinese automaker is celebrating a milestone: the 10 millionth new energy vehicle (NEV) has rolled off the production line at the BYD plant in Guangdong in southern China. Impressively, while the first 5 million vehicles took around 15 years to produce, the next 5 million were turned out in just 15 months.

And BYD intends to continue at full speed. On the occasion of the milestone, it was announced that the Company intends to invest USD 13.9 billion in the coming years to advance the integration of artificial intelligence into production and the vehicles themselves. This naturally also increases the pressure on German automakers. Volkswagen, BMW & Co. have to invest in order not to lose ground.

The gold price is currently consolidating at a high level. This offers investors entry opportunities. The shares of the major producers, such as Barrick Gold, are not currently compelling. Instead, explorers like Thunder Gold are undervalued. Successful drilling programs and takeover speculation could drive the Canadian company's shares higher. BYD continues to lead German automakers in terms of electric mobility and technology.