Gold: Are the doves of peace driving up the price? Agnico Eagle, Desert Gold, and B2Gold in the spotlight!

Agnico Eagle: Appetite for Even More Growth

Just recently, Agnico Eagle demonstrated its financial strength with three acquisitions in Finland. The company invested approximately USD 2.7 billion, paying for the deals largely with its own shares. This makes Finland likely the second home of the Toronto-based group, after Québec in Canada. But the world's second-largest gold producer still does not seem to have had enough. That is no surprise: last year, the virtually debt-free company generated USD 3 billion in free cash flow.

The investments are now continuing. First, the Board of Directors has given the green light for an investment of approximately USD 2.4 billion in its Hope Bay mine in the Canadian Arctic. Agnico acquired the gold mine in 2021 through the acquisition of TMAC Resources, but then suspended production to focus fully on an aggressive exploration and drilling program. The true extent of the gold deposit was unknown at the time. Now, the project is officially being ramped up again. Plans call for the construction of an underground mine and a state-of-the-art processing plant. Agnico Eagle's Preliminary Economic Assessment (PEA) projects annual production of 400,000 to 435,000 ounces over the first 11 years. Cash costs per ounce are expected to be below USD 1,000. Due to the high price of gold, Agnico Eagle expects an after-tax internal rate of return (IRR) of around 26% in the initial phase. A unique aspect of the construction: to keep logistics costs in the Arctic as low as possible, construction materials and equipment will be transported by cargo ship during the ice-free summer months.

Investment in Wallbridge Mining

In addition, Agnico Eagle continues to pursue an expansion strategy for its core region. The company has now announced that it has doubled its stake in Wallbridge Mining to 19.9%. Agnico is investing CAD 22.44 million in this transaction. Following the announcement of the deal, Wallbridge's shares rose sharply and are now trading at around CAD 0.10. With the fresh capital, Wallbridge raised a total of CAD 56 million, the company intends to finance exploration and the pre-feasibility study (PFS) for its flagship Fenelon project. Coincidentally, it lies on the same trend as Agnico's Detour Lake mine, which opened in 2013. Accordingly, there is speculation that Wallbridge could be acquired in the medium term. On the other hand, the resource, totalling around 3.4 million ounces of gold, is currently still a bit too small for Agnico.

With these investments, Agnico Eagle is securing its future growth. The stock has fallen significantly in the wake of the war in the Persian Gulf, and this whole series of acquisitions and investments. Since the end of February, it has dropped by about 30% on the NYSE. For long-term investors who believe in higher gold prices, this offers the opportunity to pick up a quality stock at a low price.

Desert Gold: The Countdown to Production Start Is Underway

Desert Gold Ventures is the next resource company poised to ramp up its gold production. The Canadian company is developing the massive SMSZ project in the Senegal-Mali Shear Zone belt, which covers an area of 440 km². Desert Gold is currently transitioning from an explorer to a producer and aims to begin gold production as early as this summer. This is driven by a capital-efficient and pragmatic strategy. Instead of spending years building a massive, expensive facility, the company is now rapidly transitioning to gold producer status via a phased production start.

The Plant has been Shipped

The focus is on the Barani East sub-project. Here, Desert Gold initially plans to build a simple, modular gravity processing plant. The plant will start with a capacity of around 200-240 tons per day (tpd). In a second step, the plant is then to be ramped up to 1,200 tons per day by the end of the year. The plant is already en route to Africa by sea. Technical acceptance of the modular plant, which consists of six containers including a 650 kVA generator and spare parts, has already been completed in China. It was shipped at the end of April and is expected to arrive at the port of Dakar (Senegal) in mid-June, so that commissioning can likely take place in mid-to-late July. Preparatory work has also already been completed. In Barani East, approximately 52,000 sqm of land have been levelled for the plant, workshops, and storage areas. The foundations are being excavated, and water wells are being drilled to supply the plant.

Analysts See Potential for a Multiplier

Desert Gold's stock has been on an upward trend since its low at the end of 2025. The share price has nearly doubled since then. However, the market capitalization remains modest at around CAD 50 million. Analysts at GBC Research have set a price target of CAD 0.93 for the shares. This would represent a multiple compared to the current price of CAD 0.14. Analysts see short-term potential in the operational implementation of the production start. In the longer term, further exploration of the project should help the company. GBC sees an opportunity here for a "fundamental revaluation" of the company on the stock market. For investors, this presents an opportunity to enter at a low valuation level.

B2Gold: Stock Looks Technically Strong

B2Gold is likely one of the cheapest gold miners on the international market. Depending on analyst estimates, the Canadian company's stock is currently valued at a P/E ratio of 5 to 10. The range of estimates among analysts is surprisingly wide, as each bank assumes a different gold price. Yet B2Gold is traditionally regarded as a financially disciplined company.

According to forecasts, the company plans to produce 820,000 to 970,000 ounces of gold this year. While this represents a slight decline compared to 2025, an open-pit mine in Namibia is winding down as scheduled, and overburden removal work is pending at Fekola in Mali. The start to the year can nevertheless be described as "successful." B2Gold reported adjusted earnings per share of USD 0.19, significantly beating consensus estimates of USD 0.11. The company produced 237,763 ounces of gold (above plan) at all-in sustaining costs (AISC) of USD 1,964 per ounce.

B2Gold Stock Shows Strong Chart Patterns

Technically, B2Gold shares currently look very strong. After forming a bottom in 2025, the stock nearly doubled in price and at times traded well above CAD 8. However, there was a sharp decline in October and late February (in line with the market). The stock is currently consolidating, but has recently formed higher lows and appears poised to move higher again. This move could be supported by several factors. First, the company's contractually fixed forward sales at significantly lower prices ended in Q1. These will no longer weigh on the Q2 figures. Financially, things are also looking very good. After selling its 70% stake in Fingold Ventures in Finland to Agnico Eagle for USD 325 million in cash, the company can use the additional cash to further develop its own portfolio. Not least, the issuance of the exploitation permit for the Fekola Regional sub-area at the Fekola Mine in Mali is still pending. A green light from the government could significantly boost the share price. Important permits are also expected for the Gramalote project in Colombia over the course of the year.

Agnico Eagle is currently on an acquisition spree. The company is proceeding strategically and wisely, focusing on secure jurisdictions and its own projects. Mega-acquisitions are being avoided. Following a setback of around 30%, the stock is once again significantly undervalued. Desert Gold is on the verge of becoming a gold producer and now needs to deliver. If production in Mali is successfully ramped up by year-end, the stock could be revalued. GBC Research now sees potential for a significant increase in valuation. B2Gold has had a strong start to the year. Now, good news from Mali and Colombia could give the stock a boost.