Correction in gold and silver? Margin calls? What this means for Kobo Resources, Barrick Mining, First Majestic, and the sector!

Kobo Resources – Footprint in one of West Africa's most attractive gold regions

If the precious metals rally continues in the new year, there is likely to be a gradual shift in favorites. Typically, the shares of large producers initially outperform precious metal prices. This was the case with Barrick, whose shares rose by around 160% in 2025, while gold rose by only 65%. In a further phase of the bull market cycle, investors increasingly rotate within the industry. Away from blue chip producers and toward developers and explorers. Kobo Resources would also benefit from this change in capital allocation. In recent weeks, the share price has already jumped by over 25%.

The Canadian exploration company is focused on its wholly owned Kossou Gold project in Côte d'Ivoire. The approximately 110 sq km property is located around 20km northwest of the capital, Yamoussoukro and lies just 6 km from one of the region's largest gold mines**, highlighting the geological potential of the area.

To date, Kobo has completed more than 26,200 meters of drilling at Kossou, with additional programs currently underway to further define the core zones and surrounding targets. Numerous drill data confirm high-grade, near-surface gold mineralization. Notable intercepts include 3.54 g/t gold over 6 meters in the Jagger Zone and 4.85 g/t gold over 5 meters in the Road Cut Zone. Initial investigations of the Kadie Zone, based on five drill holes, have also returned very high-grade mineralization values, including 23.99 g/t gold over 9 meters.

In addition, the Company is advancing exploration on its 302 sq km Kotobi concession area. The strategic goal remains to acquire further promising properties and thus expand the Company's exploration portfolio in one of the most attractive gold regions in West Africa. At a current price of just under CAD 0.30, Kobo is valued at around CAD 35 million. This does not yet adequately reflect the potential of the flagship Kossou Gold project.

Barrick Mining – Are analysts too cautious? IPO of North American assets?

The shares of the world's second-largest gold producer have impressively outperformed the precious metal price in 2025. The high gold price has kept the cash registers ringing. Even though analysts currently attribute an average upside potential of only around 10% to the stock, this assessment could soon prove to be too conservative.

Rising gold prices provide Barrick with enormous leverage. Investors were able to see this in the most recently published third-quarter figures. The massive increases in cash flow are impressive: operating cash flow rose to USD 2.4 billion, while free cash flow jumped to USD 1.5 billion. This is good news for shareholders, as the Company expanded its share buyback program and increased its dividend. The high level of profitability also leaves room for acquisitions.

Barrick could receive a significant boost in the coming months from the spin-off and IPO of its North American gold assets (its stakes in Nevada Gold Mines, Pueblo Viejo, and Fourmile). The Company informed the market in December that it was reviewing these plans. Analysts estimate the value of the IPO at at least USD 40 billion, while Barrick is currently valued at USD 74 billion.

First Majestic Silver – Too fast for analysts?

First Majestic Silver's valuation has reached an impressive CAD 11.3 billion. The share price has nearly tripled over the past 12 months. This is hardly surprising given the spectacular rise in silver prices, combined with the Company's position as a major silver producer. However, the 2025 P/E ratio is now also a hefty 67. The Company has forecast production of 30.6 to 32.6 million ounces of silver equivalent for 2025.

On average, analysts consider the shares to be almost fully valued, with upside potential of less than 10%. However, given the forecasted strong increase in free cash flow and the potential continuation of the bull market, it would not be surprising if the experts soon raise the bar.

The Company recently announced a consolidation of its portfolio. Accordingly, it is selling its wholly owned Del Toro Silver Mine in Mexico to Sierra Madre Gold & Silver for up to USD 60 million in cash and shares. The completion of the transaction is subject to several conditions precedent.

Precious metal prices remain in bullish mode despite minor setbacks. US banks see the gold price reaching at least USD 4,900 this year. This is good news for gold and silver producers. If Barrick's IPO plans for its North American assets materialize, this should lead to a significantly higher valuation of the stock. Kobo Resources should benefit from a rotation toward smaller stocks within the sector. The large and promising flagship Kossou Gold project should have a positive impact on the share price with further good drilling data and due to its advantageous location in the immediate vicinity of large deposits.