Glencore, Kobo Resources, Elmet Group: Gold Discovery and Billion-Dollar Deal

Glencore: Global Aluminum Strategy

The Swiss commodities conglomerate Glencore is currently planning an expansion into West Africa and is negotiating with the government of Guinea to expand economic cooperation. The talks focus on financial commitments related to alumina processing as well as the construction and expansion of the necessary energy infrastructure.

The negotiations are based on an agreed pre-financing agreement worth more than USD 300 million between the commodities trader and the state-owned mining company Nimba Mining. This agreement secures Glencore the marketing rights for an annual volume of 10 to 12 million metric tons of bauxite over a 5-year period. Guinea, which has become the world's largest bauxite producer, is pursuing a strategic plan to process raw materials domestically in the future. The government also aims to tap new markets to reduce its heavy reliance on exports to Asia. No binding decisions regarding ownership structures or investment plans have been made yet.

In addition to negotiations in Africa, Glencore is exploring business opportunities in South America. In Venezuela, the company is competing with the Mercuria Energy Group to secure a contract for Venalum, the country's largest aluminum smelter. The goal of the discussions with government agencies is to take over operational management of the production facility and to secure a guaranteed purchase of the metal produced there. Mercuria is negotiating in cooperation with the investment firm Heeney Kapital, which has previously completed transactions in Venezuela's commodities sector. However, neither side has signed any contracts to date. The current talks indicate a general interest among Western trading companies in re-engaging with Venezuela's industrial sector.

Kobo Resources: Gold System Continues to Grow

At Kobo Resources, evidence is mounting that the Kossou project in Côte d'Ivoire could be significantly larger than initially assumed. The most recent drilling has once again expanded the gold mineralization at the northern end of the Road Cut Zone. Of particular note is drill hole KDD0179, which yielded several high-grade intersections, including 5.0 m at 4.55 g/t gold, 6.0 m at 2.30 g/t, and a separate 1.0-meter interval with an exceptional 68.60 g/t. KDD0175 also returned, among other results, 7.0 m at 2.25 g/t. Crucially, the system remains open to the north and at depth.

This continues a series of promising results. Back in August, Kobo reported from the Road Cut Zone 2.0 m at 21.10 g/t, 7.0 m at 4.16 g/t, and 8.0 m at 2.65 g/t gold. It is becoming increasingly clear that the mineralization is not confined to a single structure. The Main Road Cut Shear, Artisanal Shear, and Contact Zone Fault form a more complex gold system with multiple mineralized zones.

To date, more than 51,295 m have been drilled at Kossou. Two drill rigs are working in parallel on resource definition and exploration. In addition, the metallurgical results support the project. SGS determined gold recoveries of approximately 94% to 99%, averaging about 97%, from samples taken from Jagger and Road Cut. The company used a conventional process combining gravity separation and cyanide leaching, similar to that employed at producing gold mines in Côte d'Ivoire.

Kobo may now be on the verge of the next stage of development. The first mineral resource estimate is expected in the fourth quarter of 2026. It is expected to reveal for the first time the scale of the gold system drilled to date. Until then, Kobo has additional leverage, as any further extension of the open structures could further strengthen the foundation for this resource.

The Elmet Group: US Department of Defense Provides a Boost

The US Department of Defense is currently pursuing a plan to establish a domestic tungsten supply chain. As a result, The Elmet Group has received USD 450 million in funding. With more than USD 165 million, a large portion of the investment is flowing directly into the modernization and expansion of the company's three existing production facilities in the US states of Maine, Michigan and Ohio.

In addition, the Group is investing approximately USD 150 million in a joint project with partners to recommission a mining complex in Nevada to improve direct access to raw materials in North America. Another USD 150 million is earmarked for international investments in mining projects in countries such as Australia and Spain to broaden its global supply sources. To coordinate this global network, the new business unit Elmet Refining & Trading was established.

In addition to the direct financial aid, the Elmet Group has secured a long-term framework agreement to supply government strategic material reserves with a volume of up to USD 2 billion. However, deliveries under this contract are not expected to begin until the new production capacities are fully operational.

The research firm Needham responded by raising its price target for the company's stock from USD 21 to USD 25 and issuing a "Buy" recommendation. Thanks to these government agreements, the company can now significantly expand its financial and strategic importance for the domestic processing and supply of critical materials such as tungsten and molybdenum.

In addition, strong results from the most recent quarter, during which the company posted a significant increase in revenue, are supporting this positive outlook. This growth is primarily driven by increased demand from sectors such as aviation, defence, electronics, and the semiconductor industry. As a result, the company's order backlog has also risen sharply year-over-year.

The battle for raw materials is increasingly becoming a battle for entire supply chains. Through its new bauxite business, Glencore is securing access to Guinea's vast reserves. At the same time, the Elmet Group is set to expand an American tungsten supply chain with USD 450 million in government support. Kobo Resources is at a much earlier stage of development. The upcoming initial resource estimate could, for the first time, reveal the true value of the Kossou gold system.