Gold price enters next stage of escalation - Barrick Mining, Dryden Gold, New Gold

Barrick Mining – Breakout

After several weeks of sideways movement, the price of gold is once again pointing north. With a weekly closing price of USD 3,446.80 per troy ounce, the price broke through the downward trend that had been in place since April 2025 and is likely to target the previous all-time high of USD 3,500 per ounce in the new trading week. The rally is being driven by several factors: geopolitical uncertainties, massive purchases by central banks, ongoing de-dollarization, and speculation about interest rate cuts in the US.

It is noteworthy that the shares of gold producers did not mirror this development one-to-one for a long time. While the metal itself has been breaking records for months, both gold producers and exploration companies have been lagging. The reasons for this were high energy and personnel costs, geopolitical risks in producing countries, and cautious investors who initially preferred direct exposure to commodities.

Now, however, the picture appears to be changing. With the sustained surge in the price of gold, producer shares are also beginning to rise significantly. Rising margins with constant production volumes are increasing companies' profits disproportionately, which is likely to lead to a classic leverage effect. Since mid-May 2025, Barrick Mining has outperformed by around 53% to USD 26.63 per ounce. Having jumped above the 2022 high of USD 25.99, the groundwork now appears to be laid for a move toward the USD 31.22 per ounce mark, the high from 2020.

Dryden Gold – Massive potential

Dryden Gold's stock is currently attracting significant attention. Since mid-April, the stock has risen by more than 138% to CAD 0.25, driven by strong drilling results in the wake of the ongoing precious metals rally. With a market capitalization of CAD 47.07 million, the Company is still a lightweight, but this could change in the future due to recent discoveries.

The focus is on the Elora Jubilee System in northwestern Ontario, where Dryden is encountering historic mines that are being re-explored using modern methods. Geologists are making spectacular discoveries. In addition to high-grade intercepts of up to 301.7 g/t gold over 3.9 m, several drill holes with grades between 3 and 15 g/t over significant lengths were also reported. Particularly exciting: visible gold at a depth of 238 m, as well as the discovery of a fourth hanging wall structure. CEO Trex Wasser emphasizes: "The Elora gold system continues to grow with each drill hole – in width, depth, and along strike."

Management has extended the original 15,000-m drill program to 20,000 m to systematically explore the entire Gold Rock target area. With approximately 70,000 ha of land, excellent infrastructure, and partnerships with First Nations, Dryden offers favorable conditions for rapid development.

The Company is also in a strong financial position, having recently raised CAD 7.8 million through a capital increase, supported by major shareholder Centerra Gold (9.9%), among others. Analysts see considerable upside potential. In June, Couloir Capital set a price target of CAD 0.65, representing upside potential of over 160% at current price levels.

New Gold – Significant outperformance

By this quarter at the latest, the rising gold price had reached the balance sheets of gold producers. The rising margins finally led to the long-awaited price gains. Until recently, gold stocks were still lagging far behind the performance of the underlying asset. New Gold's stock has been one of the few exceptions, skyrocketing since September 2022 with a performance of over 923% to currently CAD 8.11. The Company now has a market capitalization of CAD 6.41 billion. Despite the rally, the stock is facing another buy signal. If the resistance level, the high from 2016, is broken sustainably, the stock is likely to target its previous all-time high in the CAD 15 range.

New Gold has ambitious plans: By 2027, the Canadian producer aims to increase its gold production to between 375,000 and 445,000 ounces and raise copper production to between 95 and 115 million pounds. By way of comparison, 298,000 ounces of gold and 54 million pounds of copper were produced in 2024.

Not only is the planned production growth particularly attractive to investors, but the significant reduction in costs is also appealing. While all-in sustaining costs were still USD 1,239 per ounce in 2024, the Company expects them to be only USD 400 to 500 in 2027. This step is made possible by the proceeds from the sale of by-products and the continuous optimization of processes.

These ambitious plans are based on the two mines, New Afton and Rainy River, both of which are located in Canada. They are considered core assets of the Company and offer considerable development potential.
New Gold has set out to consistently exploit this potential in the coming years and turn the mines into more profitable cash cows.

The price of gold is likely to make another attempt at its historic high, benefiting gold producers such as Barrick Mining. New Gold aims to reduce its costs significantly. According to analysts, Dryden Gold has further potential to double in value.