Gold and Silver Correction Opens Up Excellent Opportunities at Kobo Resources, Barrick Mining, and First Majestic

Kobo Resources: When Will the Revaluation Happen?

The Canadian exploration company focuses on Côte d'Ivoire, which has developed into one of Africa's most dynamic gold regions in recent years. International producers have invested billions there, and several new deposits have been discovered simultaneously. For explorers, the country offers a combination of geological potential, comparatively good infrastructure, and mining-friendly policies.

At the center of its activities is the wholly-owned Kossou Gold project. This project is located in a region that has already yielded several significant gold deposits. Over the course of past drilling programs, more than 42,000 m have been drilled, and several promising zones have been identified.

In particular, developments in the Jagger and Road Cut systems stand out with spectacular drill hits. The Road Cut Zone most recently returned 7.0 m grading 5.67 g/t gold (Au). The Jagger Zone surpassed this to an extraordinary degree, with an interval of 2 m grading 75.29 g/t Au, including 1 m at 150 g/t Au. These are outstanding drill intercepts. In addition, drilling south of the main zone identified a 22-meter-thick mineralized zone grading 0.65 g/t Au, including 7 m with 1.2 g/t Au. Importantly, the mineralized zones remain open both along strike and at depth, indicating further exploration upside.

The company recently reported a major milestone. Metallurgical tests showed an average gold recovery rate of 97%. This is an exceptionally good result, indicating that the precious metal can later be extracted from the rock with high efficiency. In addition, the Canadian company is working on the first resource estimate for Kossou.

As part of its regional expansion strategy, Kobo Resources is building a portfolio with the Kotobi and Yakassé projects, as well as other earn-in agreements. Kotobi, in particular, could generate exciting news in the coming months. The company is preparing its first drill program there after earlier work identified several large-scale gold anomalies.

In the spring, Kobo Resources completed a capital increase at a price of CAD 0.335 per share, raising CAD 5.5 million in fresh funds for further exploration. At a current share price of CAD 0.21, the company is valued at approximately CAD 28 million.

IIF host Lyndsay Malchuk speaks with CEO Edward Gosselin about the outlook for Kobo Resources in Côte d'Ivoire.

https://youtu.be/R4IkatN1QzQ

Barrick Mining: Does Copper Outshine Gold?

Barrick's history is closely tied to the gold market. With a market capitalization of around CAD 87 billion, the company is one of the world's largest producers of the precious metal. The Canadian company is undergoing a decisive transformation. Analysts believe the stock has upside potential of around 40%.

The company plans to spin off its North American gold assets and list them as a separate public company. The crown jewel is its stake in Nevada Gold Mines, a joint venture with Newmont. The high gold price, in particular, has brought the mining giant record profits and cash flow in recent quarters. This has been accompanied by a more shareholder-friendly dividend policy and share buybacks.

The planned spin-off will unlock value not yet priced into the market. At the same time, this shifts the focus of activities toward copper. This industrial metal is emerging as a key commodity. The global expansion of power grids, electric mobility, data centers, and AI is driving long-term growth in copper demand. According to expert estimates, the disproportionate rise in demand will lead to massive supply shortages in the future. Rising prices are therefore inevitable.

First Majestic: A Pure Play at a Discount Price

The price of silver has recently corrected significantly, falling by half from its all-time high. In the long term, most experts anticipate a supply deficit, which favors producers. The precious metal benefits from structural demand from the solar industry, electric mobility, and the expansion of power grids.

Over many years, the Canadian company has established itself as one of the few major primary producers with multiple mines in Mexico. In the first quarter, the company nearly doubled its revenue to USD 477 million. Profit and free cash flow rose to USD 128 million and USD 224 million, respectively. As a result, First Majestic increased its dividend payout ratio to shareholders.

With a current share price of around CAD 24, the company is valued at CAD 11.3 billion. The 2027 P/E ratio stands at 13, a moderate level. Analysts have set an average price target of CAD 38.50, signaling significant upside potential.

The decline in precious metal prices opens up attractive opportunities for investors with a long-term perspective. Analysts see significant upside potential for industry heavyweights such as Barrick Mining and First Majestic. However, as an explorer, Kobo Resources has a completely different lever for value growth. Project progress and initial resource estimates are likely to provide significant positive momentum for the stock.