From black gold and precious metals to data gold: Why BP, Formation Metals, and Oracle are now indispensable

BP – With solid quarterly figures

BP currently presents an interesting picture for experienced investors. The third-quarter figures, published on November 4, underscore a solid operating performance that is hardly reflected in the current valuation. With adjusted earnings of USD 2.2 billion and operating cash flow of USD 7.8 billion, the group's strategy of refocusing on its core competencies is bearing fruit. Its operational excellence is remarkable. Refinery availability of 96.6% marks the best quarter in two decades. This clearly demonstrates that management has significantly increased efficiency.

Strategically, the consistent focus on profitability is striking. Instead of grand visions, the focus is on capital-disciplined projects. Of the six major projects planned for 2025, four went online ahead of schedule. At the same time, portfolio consolidation is in full swing. The expected proceeds from disposals of over USD 4 billion this year will ease the burden on the balance sheet and create financial leeway. The cost reductions achieved and the strong operating cash flow underscore the turnaround.

From an investor's perspective, the valuation appears attractive with a future price-to-earnings ratio of around 12 and a dividend yield of just under 5.6%. The market is pricing in a lot of skepticism that does not do justice to the visible progress. The combination of strong operating performance, disciplined capital allocation, and high shareholder returns creates a compelling setup. Occasional weaknesses in oil trading or volatile tax rates should not be overrated. The stock gained ground after the quarterly figures and is currently available for EUR 5.364.

Formation Metals – Worth a closer look

In the world of gold explorers, Formation Metals stands out. While many small companies operate with tight budgets, this team boasts an unusually strong financial position. Recently raised funds have replenished the war chest to around CAD 12.7 million, which is significant given the Company's comparatively modest market capitalization of approximately CAD 11 million. This means that the planned, ambitious drilling program is fully financed without the need for new money from shareholders in the foreseeable future, creating peace of mind and allowing the Company to focus entirely on exploration.

The flagship N2 Gold Project in the renowned Abitibi region of Québec was acquired at an extremely low cost. The historical resource of roughly 871,000 ounces was secured at well under CAD 1 per ounce. This is remarkable and creates enormous resource leverage. The property comprises 87 claims covering an area of approximately 4,400 hectares. In addition, there are location-related advantages such as legal certainty, existing infrastructure, and proximity to active mines operated by major players, which significantly reduce operational risk and future capital requirements.

However, the real driver of the turnaround is the fully funded, extensive drilling program. A total of 30,000 m is planned, which will be divided into two parts. One-half will be used to confirm the known resource, while the other half is purely focused on growth. With over 15 km of untested seismic structures on the property, the potential for a multiplication of the resource is evident. The combination of a strong cash position, a project in a top region, and a clear, fully financed growth plan makes Formation Metals a compelling gold candidate. Its proximity to producing mines also increases the likelihood of becoming a takeover target if drill results are promising. The stock is currently trading at CAD 0.28, well below the price of the last financing.

Oracle – The quiet cloud giant

Oracle's performance in the cloud sector in recent quarters has been remarkable. The Company reported a 12% increase in revenue in its latest quarterly figures, driven by strong cloud growth of 28%. The real highlight of the figures released is cloud infrastructure (OCI), which grew by 52%, highlighting that Oracle has long been more than just a database company. A fundamental shift is underway: the Company is benefiting from the migration to AI workloads and multi-cloud strategies. This demonstrates that Oracle's stock is not just AI hype, but has a real, rapidly expanding core business.

However, there is also another side to the coin. The dependence on a few large customers, especially OpenAI, is causing the market some concern. In addition, the massive expansion of capacity is eating up a lot of money and driving up debt. Although profit margins in the cloud are temptingly high, the ubiquitous hardware bottlenecks are slowing down the hype to some extent. Oracle now has to step up and deliver. Whether the turnaround succeeds depends not only on immense demand but also on whether the scaling goes smoothly.

The order backlog has increased significantly. The Company has long since shed its old image and is now a hot contender in the hyperscaler market. The combination of a stable ERP business and the dynamic OCI division is simply strong. For investors who are betting on the long-term AI story, Oracle offers the best of both worlds. Solid profitability meets young, aggressive growth. Since the last quarterly figures, which sent the stock soaring, it has been steadily declining. A share currently costs USD 236.15.

Three opportunities stand out in the battle for the golden themes of the future. BP is an impressive oil major with robust operating performance and an attractive dividend for investors. Formation Metals, a gold explorer, impresses with solid financing and a promising drill program. And Oracle is increasingly establishing itself as a cloud giant whose infrastructure growth is fueled by AI demand.