November 12th, 2025 | 06:55 CET
Caution with Plug Power and Gerresheimer! Gold heading toward USD 10,000? What is happening with Formation Metals shares?
Experts see Formation Metals as a potential multi-million-ounce gold story with takeover potential. In addition, the Canadian exploration company's cash position is almost equal to its market capitalization. In contrast, Plug Power's cash burn remains high. Will the stock market be satisfied with the reduction in losses and speculation around AI and energy? And what is Gerresheimer doing? The stock's decline appears to be relentless, with personnel changes having little effect so far. Meanwhile, a drop below the EUR 20 mark is also possible.
time to read: 3 minutes
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Author:
Fabian Lorenz
ISIN:
PLUG POWER INC. DL-_01 | US72919P2020 , GERRESHEIMER AG | DE000A0LD6E6 , FORMATION METALS INC | CA34638F1053
Table of contents:
"[...] Our projects are at the initial, high reward exploration stage. [...]" Humphrey Hale, CEO, Managing Geologist, Carnavale Resources Ltd.
Author
Fabian Lorenz
For more than twenty years, the Cologne native has been intensively involved with the stock market, both professionally and privately. He is particularly passionate about national and international small and micro caps.
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Formation Metals: Potential multi-million-ounce story
Is the gold price now heading toward USD 10,000? At least it has once again surpassed USD 4,000. The correction appears to be over, and the focus is back on the future. Jamie Dimon could be right. The CEO of the largest US bank, JPMorgan, had predicted a gold price of USD 5,000 back in October. Even the USD 10,000 mark could be possible for the precious metal in the medium term.
With the favorable gold price, gold stocks are also likely to pick up again. For example, during the correction, Formation Metals' share price fell from EUR 0.25 to EUR 0.17, creating renewed upside potential.
The experts at researchanalyst.com consider Formation Metals an exciting stock. Its cash position is only slightly below its market capitalization. In addition, the explorer offers exceptional exploration potential in a Tier-1 region with historical data and large open zones. The project could develop into a multi-million-ounce story, making it attractive to Agnico Eagle, for example. A potential takeover would likely result in a very different share price.
In order to increase resources, Formation Metals recently expanded the drilling program for the N2 Gold Project in Quebec to 30,000 meters. Along the known strike directions of the "A," "RJ," and "Central" zones, the Company is targeting new, higher-grade trends. In addition, infill and extension drilling is also planned. N2 hosts historical resources totaling approximately 870,000 ounces of gold.
Plug Power: Losses remain high
While Formation Metals aims to expand its gold resources, Plug Power continues to struggle with a heavily loss-making business model. After the spectacular share price surge in recent months, the third-quarter figures were highly anticipated.
Plug Power slightly increased its revenue in the third quarter of 2025 from USD 173.7 million to USD 177 million. The gross loss (according to GAAP) rose from USD 100 million to USD 120 million. The Company pointed out that, excluding one-time expenses, the loss was reduced from USD 86 million in the same period last year to USD 37 million. This was due to ongoing cost reductions and improved prices.
The net result remains deep in the red. Plug recorded a net loss of USD 211.2 million, or USD 0.25 per share, in the third quarter of 2024. Plug shares were trading at USD 2.56 before the figures were released, giving the Company a market capitalization of around USD 3 billion.
Gerresheimer: The crash continues!
While the price of gold is rising again, which should also give Formation Metals' share price a boost, all of Gerresheimer's turnaround measures have so far come to nothing. Despite the crash from EUR 80 to below EUR 24 since February, there is not even a bottom in sight.
The personnel consequences have so far been ineffective. Three members of the Executive Board, including the CEO and CFO, have been replaced. Since November 1, the Company has once again been headed by Uwe Röhrhoff. He had already led Gerresheimer until 2017 and is now tasked with restoring calm. However, those who had hoped for a quick rebound in the share price have been disappointed so far.
It is understandable that investors remain very cautious. The Company had previously had to lower its forecast for the current year. Instead of sales growth of up to 5%, management now expects a maximum of only 2%. The weak performance in the cosmetics and liquid medication business was blamed for this. In addition, the dividend was cut. There is also uncertainty surrounding a planned takeover, and to make matters worse, BaFin is also reviewing the balance sheets.
In terms of chart analysis, the stock is in free fall. It is trading at its lowest level since 2010. A slide below EUR 20 would come as no surprise.
Gold is shining again. This should also boost the share price of Formation Metals. The Company is well-financed, and the N2 project could develop into a multi-million-ounce story. At that point, it would certainly become a hot acquisition target. A takeover of Gerresheimer might also be interesting at the current level. However, any takeover premium would likely be modest and could mean losses for many shareholders. The figures at Plug Power were sobering. It remains to be seen whether the stock market will be satisfied with the AI energy hype.
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