Gold after the correction: How to profit from the next rise with Newmont, Kobo Resources, and Agnico Eagle

Newmont - Strong cash flow despite decline in production

Newmont's third quarter provided clear evidence of the leverage effect of high gold prices. With gold trading at USD 3,539 per ounce, cash flows exploded. Operating cash flow reached USD 2.3 billion, while free cash flow doubled to USD 1.57 billion. These financial figures enabled USD 2 billion in debt repayment and a dividend payment of USD 823 million. Production itself declined to 1.42 million ounces, primarily due to the completion of the asset sale program.

Portfolio consolidation is virtually complete, with net asset sales totaling USD 640 million for the quarter. This creates scope for the next strategic move. According to media reports, Newmont is considering a deal to take control of the Nevada Gold joint venture assets from Barrick Mining. This could range from a simple buyout of Barrick's JV stake to a complete acquisition of its rival. Such a transaction would significantly strengthen Newmont's position in the highly productive Nevada belt. At the same time, the Ahafo North growth project has reached commercial production and is expected to deliver 250,000–300,000 ounces per year in the future.

The coming year will be a transitional one. Production from the managed portfolio is expected to decline by up to 5% due to planned mining sequences at key operations such as Peñasquito and Cadia. In addition, management warns that persistently high gold prices could offset a significant portion of cost savings through higher royalties and taxes. Capital expenditures are expected to increase in 2026 as deferred projects move ahead. Nevertheless, the Company remains well-positioned with a virtually debt-free balance sheet and strong cash flows. The stock has recently corrected by about 22% from its peak and is currently trading at USD 79.67.

Kobo Resources - Three reasons for more attention

For investors looking for promising gold exploration stories, Kobo Resources is worth a closer look. The Company has achieved several strategic milestones in recent months that increase its attractiveness. Since mid-October, the stock has been tradable on the Frankfurt Stock Exchange under the symbol Q1Z, in addition to the TSX Venture Exchange. This step significantly improves liquidity and visibility, especially for European investors. At the same time, Kobo launched an extensive drilling program at its flagship Kossou project in Côte d'Ivoire. This combination of improved market access and operational momentum creates an interesting starting position.

The latest drilling results from the Kossou Gold Project underscore the property's potential. Particularly noteworthy is the result from the Road Cut Zone, which intersects 17.0 m at 3.87 g/t Au. Such high-grade intervals, encountered at relatively shallow depths, point to a robust mineralization system. The continuity of the gold-bearing structures is confirmed by additional drill holes in the Jagger Zone, which have identified mineralization to depths of over 240 m. The ongoing 12,000–15,000 m program aims to further define these zones and lay the foundation for the project's first resource estimate.

In addition to its geological potential, Kobo Resources offers a rare strategic advantage. The Kossou Project is located just 9 km from an established mine operated by Perseus Mining, a proximity that could prove decisive. Major producers are constantly seeking new ore sources near existing processing infrastructure to extend mine life and improve utilization rates. For Kobo, this proximity opens up a clear and accelerated exit scenario that goes beyond the lengthy process of building a mine independently. By demonstrating a substantial gold resource through its ongoing drilling program, the Company could position itself as a highly attractive takeover target for its larger neighbor. The stock has also recently suffered from the falling gold price and is currently trading at CAD 0.26.

Agnico Eagle – Why the gold giant is now even stronger

The recent performance of Agnico Eagle Mines (AEM) is impressive. Driven by a robust gold price environment, the Company posted record-breaking figures in the third quarter. Gold production was 866,936 ounces, with all-in sustaining costs of only USD 1,373 per ounce. This discipline in cost control, combined with a realized gold price of USD 3,476, drove margins significantly higher. The result is adjusted net income of USD 1.09 billion and free cash flow of USD 1.19 billion for the quarter. Agnico used this financial strength to further strengthen its balance sheet and repay USD 400 million in debt.

Agnico Eagle Mines is strategically positioned for the long term. The Company is sticking to its production forecast of 3.3 to 3.5 million ounces for the full year 2025 and is consistently investing in its growth. Capital expenditures are in the range of USD 1.75 to USD 1.95 billion. Projects such as Canadian Malartic and Detour Lake are being rapidly expanded with the aim of developing them into mines with annual production of over 1 million ounces. In addition, the commitment to Perpetua Resources shows that Agnico is also deploying its capital outside of organic growth. These strategic investments underscore the Company's determination to maintain its leading position in gold mining.

For investors, the picture of a high-quality player is becoming clearer. The virtually debt-free balance sheet with net cash of USD 2.16 billion and Moody's recently upgraded investment-grade rating offer financial flexibility in volatile markets. This strength allows management to invest capital in growth projects and return it to shareholders. This is evidenced by share buybacks totaling USD 150 million in the quarter. In an industry where operational risks are often high, Agnico Eagle Mines continues to set standards in terms of reliability and financial solidity. The stock has also lost the least recently and currently costs USD 156.78.

The recent gold correction offers an attractive entry opportunity, driven by intact fundamentals such as geopolitical tensions and expectations of interest rate cuts. Newmont demonstrates the leverage effect of high gold prices with exploding cash flows despite a decline in production. Kobo Resources scores as an exploration company with promising drilling results and a clear takeover scenario due to its proximity to an established mine. Agnico Eagle shines with record-breaking quarterly figures, cost-disciplined production, and a virtually debt-free balance sheet. Together, these three companies form a strong portfolio.