Desert Gold, Barrick Mining, Nel ASA – Do not miss out: Favorites are changing in the bull market!

Desert Gold – When will the starting gun be fired?

While the price of gold is surging from one record to the next, many exploration companies are still lagging. However, this phenomenon is a familiar pattern in many bull markets. It is typically only when precious metal prices rise sharply and sustainably that junior miners begin to sprint, often catching up quickly - acting like a leveraged play on the underlying commodity.

Desert Gold's core focus is the exploration and development of its flagship SMSZ project in western Mali. The Canadian company recently published the results of its first Preliminary Economic Assessment (PEA) for the Barani and Gourbassi sub-deposits.

The convincing key figures confirmed an economically viable open-pit project with low capital requirements. Based on a gold price of USD 3,366 per ounce, the project's net present value (NPV) stands at USD 54 million, with a payback period of only 2.5 years. Considering that the current gold price is around USD 4,000 per ounce and that only about 10% of the total SMSZ gold resources were included in the assessment, this figure appears conservative, especially given the Company's modest market capitalization of just CAD 20 million.

The Canadians' latest acquisition is strategically very significant. Desert Gold has entered into an option agreement with the Ivorian company Flower Holdings SARLU to acquire a 90% stake in the 297 km² Tiegba Gold project in Côte d'Ivoire. This marks an important step in Desert Gold's goal to establish itself as a regionally diversified gold explorer and developer in West Africa. The project is located in the highly prospective Tehini Gold Belt, near major producing mines such as Agbaou, Bonikro, and Yaouré. To date, only a small portion of the license area has been explored, yet surface samples have already revealed strong gold anomalies. Desert Gold CEO Jared Scharf describes Tiegba as "ripe for discovery."

Barrick – Asset sale in Côte d'Ivoire

The gold and copper producer's share price has gained around 120% this year. Despite this spectacular rally, the stock's valuation metrics remain below the industry average. The Canadian mining giant continues to deliver strong financial figures: in the past fiscal year, the world's second-largest gold producer generated operating cash flow of around USD 4.5 billion and rewarded shareholders with dividends and share buybacks totaling USD 1.2 billion.

The trigger for the recent rise was the preliminary project evaluation of the Fourmile Gold project in Nevada. With a mine life of over 25 years, projected annual production of up to 750,000 ounces of gold, and investment costs of USD 1.5 to 1.7 billion, high profitability beckons.

Barrick recently signed an agreement to sell its stake in the Tongon Gold mine and some of its exploration licenses in Côte d'Ivoire to the Atlantic Group for up to USD 305 million.

Nel – Major order from Switzerland

There are increasing signs of a sustained bottom formation for hydrogen stocks. Nel's shares appear to have found support in the region of EUR 0.18 and are currently trading a good 20% above this level. This values the Norwegian company at around EUR 380 million. Overall, however, analysts consider the stock to be fully valued. Perhaps the profit warning issued at the beginning of the year is still playing a role here.

The hydrogen specialist recently announced a major order from Switzerland for a megawatt electrolyser. Nel's technology is to be used to expand the Swiss ecosystem for green hydrogen. If further orders follow, this could have a positive impact on the share price.

When is the right time?

Hydrogen stocks appear to be bottoming out, while the broad market and commodities continue their upward trend. This suggests that Nel and Barrick are likely to remain on the winners' list. However, the shares of Desert Gold promise significantly higher potential. The stock has not yet reflected the rise in the gold price and is backed by valuable projects whose intrinsic worth far exceeds the Company's current market valuation.