Gold on track for a new all-time high: How to profit with Barrick Mining, AJN Resources, and Newmont

Barrick Mining – Gold price tailwind and turmoil in Mali

Barrick is caught between light and shadow. Gold production recently fell short of its own targets while production costs rose significantly. The loss of the Loulo-Gounkoto mine in Mali, where the government took control, weighs particularly heavily. This blow significantly reduces production volumes and revenues. Despite these operational setbacks, the Company is proving its resilience, as historically high gold prices have enabled Barrick to achieve significantly higher profits and robust cash flows recently. This financial basis provides room for maneuver.

The dispute in Mali remains the biggest source of uncertainty. The strategically important Loulo-Gounkoto mine has been shut down since January following the government's decision to halt gold exports and seize stocks. A court transferred control to a state administrator for six months. Barrick denies allegations of unpaid taxes and is relying on international arbitration tribunals. The mine previously contributed significantly to overall production, and its future is currently unclear. The big question is why only Barrick Mining is currently experiencing such extreme difficulties in the region.

This could present an opportunity for risk-aware investors. Many analysts consider Barrick's remaining assets to be undervalued, especially after its withdrawal from Mali. The market appears to be underestimating the remaining earning power. Of course, hurdles such as possible gold price fluctuations and incalculable political risks in producing countries remain. However, those who consider these factors in their prices and bet on a revaluation of the portfolio could benefit in the long term. Barrick remains a player with a global presence whose value does not depend solely on Mali. At USD 20.46, the share price is close to its high for the year.

AJN Resources - Shifts focus to gold

AJN Resources is drawing clear conclusions from market conditions. The Company is shifting its strategic focus back to gold exploration. The lithium projects in the Democratic Republic of Congo (DRC) will be retained but not actively pursued for the time being. This decision was made in light of the slowing momentum in the lithium sector. This realignment underscores the pragmatic approach of CEO Klaus Eckhof and his management team. Instead of investing in challenging markets, the Company is now refocusing on its proven core business.

Specifically, AJN secured a promising gold project in Ethiopia at the end of May. With an option on 70% of the shares in the 42.8 sq km Okate project in the well-known Adola Gold Belt, the Company has cleared an important hurdle. The advanced exploration status, with 88 drill holes drilled by previous owners, is particularly attractive. Previous studies estimate that several million ounces of gold can be found on the property. AJN plans to move quickly to assess the potential. Technical on-site inspections and initial drilling are scheduled within the next three months. The aim is to validate the historical data and gain new insights quickly. The location near the established Lega Dembi mine, Ethiopia's largest gold producer, speaks to the geological attractiveness.

In Kenya, the Company owns 70% of the Dabel Gold Project, which covers 672 sq km and is located near the border with Ethiopia. At the same time, the DRC remains a key pillar for AJN. Activities are ongoing in areas where Eckhof's management team has extensive experience and established networks as the Company continues to identify substantial opportunities in these areas. Negotiations for at least one or two additional gold projects in the DRC are currently in the final stages. AJN firmly expects to sign agreements within the coming weeks. These would further strengthen the portfolio in the core region. The coming months promise to be eventful. The share price currently stands at CAD 0.08 and has recently been under pressure due to the focus on lithium, but this could change soon.

Newmont – Focus, finances, and future path

Newmont has used the last few months to decisively streamline its portfolio. The gold giant sold six mines outside its core focus, generating over USD 4 billion in cash, of which more than USD 2.5 billion has already been received. The goal is clear: to focus on top locations ("Tier 1 assets") that are profitable in the long term and to achieve a significantly more robust balance sheet. The buyers ranged from established medium-sized companies to newcomers, with Newmont, in some cases, using flexible deal structures with performance-based components to maximize the value of the transactions.

The first quarter reflects this restructuring. A strong net profit of USD 1.9 billion, compared to USD 488 million in the previous quarter, was driven primarily by sales proceeds and higher investment valuations. Adjusted net income was solid at USD 1.4 billion, or USD 1.25 per share. Adjusted EBITDA of USD 2.6 billion was down 14% due to transaction costs and valuations. Production reached 1.5 million ounces, while total costs (AISC) rose as expected by 13% to USD 1,651 per ounce.

Newmont remains firmly committed to sustainability and flexibility for the future. In the first quarter alone, USD 95 million was invested in reclamation, including USD 50 million in a water treatment plant in Yanacocha. In addition, the latest deal, the sale of exploration projects in Australia to Inflection Resources in exchange for shares and future profit sharing, demonstrates how the Company is strategically leveraging non-core assets. With a focus on top mines and clear investments in the environment and the future, Newmont is well-positioned to benefit from a strong gold market. The stock is currently trading at USD 56.76.

In light of the gold price rally, the three companies offer different opportunity profiles. Barrick Mining is struggling with operational setbacks such as the loss of the Loulo-Gounkoto mine in Mali, but is benefiting massively from historically high gold prices, which are leading to substantial profits and cash flows and making its remaining assets appear potentially undervalued. AJN Resources is resolutely refocusing on gold exploration and is rapidly building a new portfolio with promising projects in Kenya, Ethiopia, and the DR Congo to capitalize on the market opportunity. Newmont has strengthened its balance sheet by selling non-core mines and is now clearly focused on profitable top locations and sustainability in order to benefit optimally from the strong gold market. All three paths offer investors the opportunity to participate in the gold boom. The chance of doubling your money is likely to be greatest with AJN Resources.