Costs are key: How Barrick Mining, Kobo Resources, and B2Gold are delivering record margins

Barrick Mining – On course for growth

Investors received several pieces of good news from the African continent regarding Barrick Mining. The protracted conflict with the Malian government over the profitable Loulo-Gounkoto mine has finally been resolved. Following an agreement and the payment of compensation in the fall, the operating license has now been extended for another 10 years. A recent feasibility study also confirms long-term economically viable reserves, giving the company planning security for the next decade and a half. This removes a significant geopolitical risk and means that one of the group's most valuable production sites is once again running smoothly.

However, the most profound change is taking place at the strategic level. Barrick is repositioning itself and wants to be perceived more strongly as a producer of copper, a key raw material for the energy transition. At the same time, management is pushing ahead with the planned spin-off of its top North American sites into an independent company called NewCo. The aim is to eliminate the valuation discount that arises from mixing stable US mines with riskier production sites. For investors, this step promises greater clarity and could better reflect the fair value of the individual parts of the company.

However, this elegant repositioning has a major catch and threatens to fail due to resistance from joint venture partner Newmont. Newmont accuses Barrick of withdrawing personnel and equipment from the joint Nevada Gold Mines to advance its own neighboring Fourmile project. As a result, production at the joint venture has recently slumped dramatically. Since Fourmile is a core part of the planned "NewCo," Newmont could refuse to approve the IPO. Ironically, the very move intended to break free is now threatening to become a stumbling block. The stock is currently trading at USD 50.74.

Kobo Resources – New drilling results underscore potential

Kobo Resources is making rapid progress in the development of its Kossou Gold project in Côte d'Ivoire. The focus is currently on two particularly promising zones, Jagger and Road Cut. In the Jagger zone, a shear zone up to 100 m wide with high-grade gold sections has emerged over a strike length of more than 1 km. The Road Cut zone is impressive due to its clear structural continuity along a so-called contact zone fault. The company has already drilled more than 40,000 meters here.

The location advantage is considerable. Perseus' neighboring Yaouré mine is only a few kilometers away, and the existing infrastructure significantly reduces drilling costs. This makes Kossou an increasingly interesting project, also for potential strategic partners.

The results from six new diamond drill holes presented on February 9 are further evidence of Kossou's growing potential. At the Road Cut Zone, mineralization was confirmed along the Contact Zone Fault more than 150 m below surface. Drill hole KDD0142 intersected several mineralized sections, including 11 m at 1.54 g/t gold. At the Jagger Zone, drill hole KDD0138 confirmed the vertical extension with 13 m at 1.77 g/t and delivered a real highlight with a high-grade interval of 26 g/t gold over 2 m. The fact that both zones remain open at depth and along strike speaks to the potential of the overall system. The planned initial resource estimate has been deliberately postponed to the second quarter to allow these strong results to be taken into account.

Kobo is well-positioned for the next steps. A private placement of approximately CAD 287,000 with long-standing partner Rockstone Drilling strengthens the cash position for ongoing programs. With approximately 105 million shares outstanding and insider ownership of around 35%, management is in the same boat as shareholders, which is a positive sign. In addition to the core work in Kossou, the next project is already waiting to start drilling with the Kotobi license. The company's commitment to the local community is also evident in the Kobo Cup, which strengthens ties with neighboring villages. Analysts at atrium research have recommended the stock as a "Buy" with a price target of CAD 0.60. The stock is currently trading at CAD 0.30.

B2Gold - Record year with operational construction sites

B2Gold reached a milestone in 2025. For the first time in the company's history, revenue exceeded the USD 3 billion mark. This was made possible by a combination of solid production of around 980,000 ounces and the strong gold price environment. However, the real highlight for investors lies in the details and is called Goose. The new mine in Nunavut reached commercial production in October and contributed nearly 39,000 ounces in the final quarter, a decisive step toward geographic diversification away from the core African markets. This is because the situation in Mali, the heart of the group, was tense due to the Barrick story.

Although the Fekola mine is running steadily, the urgently awaited production permit for the regional extension project is still pending. B2Gold expects approval in the first half of 2026, which would bring an additional 60,000 to 80,000 ounces. However, the repeated delays show how vulnerable the business in the Sahel region remains to bureaucratic hurdles and the realignment of mining law. Despite record revenues, investors need to take a closer look. The outlook for 2026 is more subdued than last year, at 820,000 to 970,000 ounces. This is due to planned declines in Namibia and Mali, which are only expected to be offset by the ramp-up phase of Goose in the course of the year.

Added to this are teething problems at the Canadian mine. Problems with the crushing plant slowed down the ramp-up, which is why the company has to invest in additional optimizations. Nevertheless, the group remains on solid financial footing. With USD 380 million in cash and an unused credit line of USD 750 million, there is sufficient leeway for upcoming investments. At the same time, the continued share buyback signals that management considers the current share price to be undervalued. The share is currently trading at USD 6.16.

As the price of gold climbs to new heights, cost control is key to record margins. Barrick Mining has resolved its problems in Mali, but the internal dispute with partner Newmont is overshadowing the planned realignment. Kobo Resources is underpinning the potential of its Kossou project with strong drilling results in the stable Ivory Coast. B2Gold breaks through the USD 3 billion revenue mark