Gold Pullback Creates Opportunity: Pan American Silver, Kobo Resources, and Agnico Eagle in Focus

Gold Price Falls

Since the start of the war in the Persian Gulf, the gold price has lost some of its gains from the beginning of the year. This is primarily due to a stronger dollar. The greenback has benefited from repatriations by US investors. For everyone else outside the dollar zone, gold remains the top choice as a safe haven. On the one hand, the trend toward de-dollarization is continuing structurally in many countries; on the other hand, hardly anyone wants to be blackmailed by Washington when push comes to shove. President Trump has impressively demonstrated over the course of the now three-week conflict that he shows no regard for friend or foe.

Added to this is the fact that it is now unclear whether the Federal Reserve will embark on a course of interest rate cuts. At its most recent meeting, Fed Chair Powell cast doubt on this. What is known, however, is that Donald Trump is determined to see lower interest rates and a return to low oil prices. He is likely to expect at least the former from his preferred candidate, Kevin Warsh, who is set to take over as Fed Chair in May. However, his nomination still needs to be approved by Congress. Furthermore, the effects of the war could soon lead to increased quantitative easing by the central bank. The already increasingly sluggish US economy is also affected by high energy prices. Added to this are supply chain issues with fertilizers and helium, which is needed by the chip industry, for example.

A Dip in Gold Prices as an Opportunity

Investors should view the dip in the gold price below the USD 5,000 mark as an opportunity to buy attractive stocks at lower levels. This is because producers continue to generate high profit margins and cash flows. Even though higher energy prices are expected to increase costs by USD 100 to USD 200 per ounce, as analysts estimate, gold is still trading significantly above the previous quarter's level in the current Q1. The rise in the gold price has so far offset the increased costs. Accordingly, producers are likely to continue generating high profit margins and report new record results for this quarter.

Agnico Eagle Mines: The Cost Leader

Agnico Eagle Mines has been among the top performers in the sector for years. Thanks to strategic acquisitions such as that of Kirkland Lake, the Canadian company has risen significantly and, in 2025, surpassed Barrick Mining for the first time to become the world's second-largest gold producer. Only Newmont ranks higher than the Toronto-based company. The management is considered the best in the gold sector and has costs under control. This is also evident in the figures for the fourth quarter of 2025. Agnico Eagle Mines has once again reached record highs. Free cash flow rose to a new record of around USD 4.4 billion. Earnings per share came in at USD 8.76. The group also set a new record for net income at USD 4.5 billion; this was more than double the figure from the previous year. In terms of production, the company jumped to second place in industry with an output of 3.45 million ounces of gold. Of course, Agnico also benefited from the rising gold price. In 2025, an average selling price of USD 3,454 per ounce was achieved, nearly USD 1,100 more than the previous year. In Q4, an all-time high was set with a realized selling price of USD 4,162 per ounce. The low costs are also impressive: Agnico incurred just USD 1,564 per ounce (AISC) in Q4.

The secret to its success lies not only in its management but primarily in its portfolio of mines. Agnico Eagle Mines focuses on secure jurisdictions such as Canada, Finland, Australia, and Mexico. This also explains the company's consistently high valuation compared to its competitors: quality simply comes at a price. In return, investors are rewarded with a steadily rising dividend. Management also announced a new share buyback program. But one thing is clear: a company generating this much cash will look for acquisitions. Management has already confirmed that it plans to go on a shopping spree.

Kobo Resources: The growth stock from West Africa

In addition to established gold producers, investors should also diversify their gold portfolios with junior exploration companies. By nature, these offer the highest opportunities but come with correspondingly higher risks. Therefore, the key is to find young companies sitting on promising projects. Kobo Resources is one such company which has established a strong position in Côte d'Ivoire. The country is considered one of the best locations in Africa for discovering gold deposits. It stands out for its high political stability, in contrast to neighbors like Mali or Burkina Faso.

Kobo Resources' main project is the wholly-owned Kossou Gold Project. It is considered one of the most exciting new discoveries in the region. For one thing, it is located just about 20 km northwest of the capital, Yamoussoukro. For another, it benefits from existing infrastructure, including roads, water, and power, since it lies not far from the Kossou Dam, which provides a stable supply of electricity and water. Last but not least: The Kossou project is located in the immediate vicinity of the Yaouré gold mine operated by the Australian gold producer Perseus Mining. The company has already attracted attention in the past with numerous acquisitions in Africa.

Kobo Resources' property covers approximately 147 sq km and is entirely located within the famous Birimian greenstone belt. Strong geochemical soil anomalies have already been identified on the site, extending over a length of about 9 km. Accordingly, there appears to be significant potential, which is also confirmed by drilling that has already been carried out. Last year's 20,000-meter drill program revealed high gold grades that begin right at surface. Drill hole KTR030a returned 6.42 grams of gold over a length of 28 m. A 5-meter interval even contained 18.04 grams of gold. The company plans to present a resource study before the end of the current first quarter.

In addition to the high gold grades, the company's structure is also impressive. Kobo Resources went public on the Toronto Stock Exchange via an RTO just three years ago. Insiders and management still hold 49.3% of the shares. Additionally, the well-known Swiss investor Gold2000 has come on board, holding 5.4% of the shares. Most recently, the company also raised just under CAD 290,000 through financing from the drilling firm Rockstone Drilling, which is also supporting the drilling operations. Kobo Resources currently has a market capitalization of approximately CAD 38 million. The presentation of the new resource could trigger a revaluation of the company. Analysts at Hallgarten are convinced of Kobo Resources' potential. In a detailed study released at the end of February, they set a 12-month price target of CAD 0.85 for the stock. This implies the stock has the potential to more than double in value.

Pan American Silver: Silver and Gold in One Stock

The silver price has also taken a hit recently, and the structural situation remains extremely challenging. As data from the Silver Institute shows, the market has been in a supply deficit for five years now. Another fact is that silver is not only an investment metal but also an industrial metal. Due to its high conductivity, it is primarily used in the solar industry (solar paste) and in batteries. But the war also plays a role. The US Tomahawk missile contains 0.5 to 1 kg of silver.

Anyone looking to invest in silver (and gold) cannot ignore Pan American Silver. The Canadian company has massively expanded its portfolio in recent years and is now one of the world's largest silver producers. For the fourth quarter just ended, the company reported earnings per share of USD 1.11, significantly higher than the market had expected. For 2025, the figure stood at USD 2.54. The high silver and gold prices also had a noticeable impact on free cash flow, which rose to USD 1.33 billion in 2025. Pan American Silver aims to produce 25 to 27 million ounces of silver this year while keeping costs below USD 19 per ounce (AISC). An additional 750,000 ounces of gold are expected to be added to that total. As of year-end, the company holds a cash balance of a substantial USD 1.3 billion. Consequently, industry rumors suggest that Pan American Silver could be heading out on a shopping spree. However, the cash is also sufficient to pay a quarterly dividend of USD 0.18 (+29%) for Q4 and to launch a new share buyback program.

With Agnico Eagle Mines, investors can gain exposure to one of the industry's heavyweights. Strong cost management is combined with operations in safe jurisdictions. Kobo Resources represents a growth play offering significant long-term potential. In the short term, the first resource estimate is likely to act as a key catalyst for the stock. Last but not least, Pan American Silver offers exposure to both silver and gold. The key point is: a well-balanced portfolio in the gold sector should range from cash flow-generating producers to high-growth exploration companies.