GOLD WITH A CLEAR CONSCIENCE: WHY B2GOLD, KOBO RESOURCES, AND PERSEUS MINING ARE WORTH A LOOK RIGHT NOW

THE DOWNSIDE OF THE GOLD RUSH

Even though the gold price has fallen quite a bit from the peak of nearly USD 5,600 per troy ounce reached in late January, the rally is by no means over. In the latest monthly report from the Frankfurt-based fund company Acatis, portfolio manager Ulrich Rathmann quotes a bon mot from US banker JPMorgan dating back to 1912: "Gold is money; everything else is credit." Not much has changed 114 years later: Central banks around the world are stockpiling gold reserves instead of investing in their own currencies. Since the precious metal is considered a safe haven in times of volatile financial markets and geopolitical upheavals, it is increasingly becoming a substitute for government bonds. According to Rathmann, it is becoming increasingly clear "that nations like the US and Japan, but unfortunately also many European countries, will never be able to repay their debts."

The gold rush is therefore likely to continue, regardless of the downsides. Environmental destruction and exploitation top the list of criticisms. After all, gold miners are not known for being overly squeamish when it comes to their profits. Life-threatening working conditions for starvation wages, and, to make matters worse, even for children, along with the widespread use of mercury and cyanide, are the order of the day, especially in Africa. In Ghana, small farmers lament the destruction of cocoa plantations due to contaminated soil, large-scale deforestation, and diverted river courses. Added to this is the fact that the mines are mostly owned by foreign corporations that do not process the raw gold locally, causing the lion's share of profits to flow out of the countries of origin.

B2GOLD: RESPONSIBLE MINING AS A BUSINESS MODEL

The example of B2Gold shows that there is another way. The mining company, headquartered in Vancouver, Canada, is committed to responsible mining. This includes not only the protection of the environment, climate, human rights, and cultural heritage, but also massive investments in the mining areas. In Namibia, for example, nearly two-thirds of procurement contracts are awarded to local suppliers, benefiting over 1,000 local companies. Nevertheless (or perhaps precisely because of this), the company is considered one of the most cost-efficient in industry, is financially rock-solid, and regularly repurchases its own shares.

The analyst consensus expects earnings of approximately CAD 1.00 per share for the current year, rising to CAD 1.63 by 2027. This puts the price-to-earnings (P/E) ratio at the current price of CAD 6.70 well within the single-digit range; based on the 2027 estimates, it is even at an almost unbeatably low 4.1. By comparison, Agnico Eagle Mines, a competitor roughly 15 times larger with a market capitalization of approximately CAD 150 billion, and also a model company in terms of sustainability, is valued at a significantly higher 2027 P/E ratio of 14.5. Since its founding in 2007, CEO Clive Johnson has focused B2Gold on both sustainability and cost efficiency. In June, the architect of the responsible mining concept will hand over operational duties to longtime CFO Mike Cinnamond, but will continue to oversee cost discipline, environmental protection, and employee welfare as honorary chairman and major shareholder.

KOBO RESOURCES: GOLD EXPLORATION IN THE LAND OF COCOA

Edouard Gosselin and Paul Sarjeant aim to build a similarly strong reputation in the industry. The two founders of the junior exploration company Kobo Resources, based in Canada, place responsible resource development and a partnership-based, respectful approach to the local population at the center of their value creation process. The Quebec-based company is focusing its search for high-grade gold deposits in Côte d'Ivoire. The country is best known among commodity investors as the world's leading cocoa exporter, but it also hosts some of West Africa's most promising gold regions.

Recent drilling results from Kobo Resources confirmed high gold grades of 5.06 grams of the precious metal per ton of rock in the Kossou Basin, located a good 20 km northwest of the political capital, Yamoussoukro. In some cases, grades of up to 20 g/t have even been reported. Given that the world's most productive mining areas have already been exploited, such a concentration would be exceptional. But even if only the gold grades of between 1.05 and 2.20 g/t uncovered in other drillings were realistic, mining would still be worthwhile. The Kossou project is divided into three zones, namely Road Cut, Jagger, and Kadie. It benefits from an excellent location, as it has direct road access, and a hydroelectric dam for power supply is less than a kilometer away. In the company's Kotobi area, located further east, high gold grades of up to 3.10 g/t have also been found. Furthermore, Kobo has another iron in the fire with the Yakassé project—in a region where industry giants such as Endeavour Mining are also active.

RESOURCE ESTIMATE AS A CATALYST

For now, however, the experienced management team led by CEO Gosselin and COO Sarjeant plans to focus on the Kossou Basin. To finance further drilling and a resource estimate (Maiden Mineral Resource Estimate, or MRE) by an independent analysis firm, Kobo is currently offering up to 16.5 million new shares as part of a private placement. This private placement could bring in around CAD 5.5 million. In the past, the company has consistently refinanced itself through equity measures to remain debt-free and be able to search for gold in promising regions without pressure. The MRE estimate derives from currently available data to determine how many ounces of gold are highly likely to be present in the ground. Results are expected in the third quarter. If they turn out as well as the test drilling, the company could automatically come into focus as a takeover candidate for larger gold producers.

But even without takeover speculation, analysts Ben Pirie and Nicholas Cortelucci from the Canadian investment firm Atrium Research assign a potential value of CAD 0.60 to Kobo shares based on the findings to date, which, at the current price of CAD 0.32, would represent a near doubling. While valid revenue and profit estimates will only be possible once the relevant report and a detailed production schedule are available, the drilling results to date lead the securities experts to conclude that the current market capitalization of CAD 35 million is significantly too low.

PERSEUS MINING: THE POTENTIAL ACQUIRER

One asset Kobo Resources can capitalize on is the Kossou project's immediate proximity to the Yaouré mine of Australian gold producer Perseus Mining, which is located just 7 km away. What is more: Kossou is considered a geological mirror image of Yaouré, where Perseus already produces more than 200,000 ounces of gold per year. No wonder the neighbor is considered one of the top contenders should a takeover of Kobo Resources ever occur. With a market capitalization equivalent to EUR 4.6 billion, it would be a breeze for the Australians to make a lucrative offer to Kobo shareholders.

In fact, alongside B2Gold, Perseus is another role model for Kobo's management. For the Australians, too, social considerations and environmentally conscious practices are integral components of their business model, aimed at securing public acceptance of gold mining. Founded in the early 2000s, the company operates the Sissingué Gold mine in addition to the Yaouré mine in Côte d'Ivoire. Its activities in West Africa began with the Edikan project in Ghana, which has produced over 2 million ounces of gold since production began in 2011. In total, 496,551 ounces of gold were produced at the three Perseus mines last year. Company management estimates production costs at USD 1,460 to 1,620 per ounce, just one-third of the current market price.

MANAGEMENT CHANGE AND GROWTH STRATEGY

Another parallel with B2Gold: At Perseus, too, longtime CEO Jeff Quartermaine is stepping down. Craig Jones, who previously served as Global Chief Operating Officer (COO) at Newcrest Mining, has been acting CEO since October 2025. He joined Perseus shortly after Newcrest was acquired by industry leader Newmont in November 2023. Analysts praised Jones for his cost discipline after he called off the acquisition of Predictive Discovery, a competitor from Guinea, in December 2025, leaving the field open to the Canadian rival bidder Robex Resources. The deal would have cost Perseus up to AUD 2.1 billion. When it became apparent that the deal could become problematic, the Australians decisively pulled the plug.

Acquisitions have traditionally been part of Perseus Mining's growth strategy. In 2024, the company secured the Nyanzaga Gold project in Tanzania for approximately USD 200 million; the project is currently under development and is expected to significantly increase production starting in 2027. Perseus also recently acquired a 9.9% stake in Aurum Resources, another company based in Australia. In doing so, management always proceeds with caution and also divests projects that appear too risky. For example, a gold mining area in Sudan is set to be sold to the Chinese Matrix Group for approximately USD 260 million. Since ore grades at Perseus's existing mines are declining, production is expected to drop temporarily this year but should rise permanently to over 500,000 ounces starting in 2027 when the new project in Tanzania comes online. With a P/E ratio of 8.7 based on 2027 estimates, the stock appears more expensive than B2Gold's; however, the expected dividend yield of 2.6% is higher than that of its Canadian competitor (1.6%). In addition, there is also an extensive share buyback program here. With cash reserves of more than USD 750 million, the company can afford this. There would therefore be no shortage of funds for a potential Kobo acquisition.

THREE PATHS TO SUSTAINABLY PRODUCED GOLD

In an environment of over-indebted nations, geopolitical tensions, and growing skepticism toward fiat currency, gold is considered the hardest of all currencies, and demand is likely to remain structurally high. Investors who wish to participate in this trend without compromising on environmental and social standards will find in B2Gold, Perseus Mining, and Kobo Resources three companies that prove that returns and responsibility are not mutually exclusive. B2Gold stands out for its attractive valuation and years of operational excellence, while Perseus Mining impresses with strong cash flow generation and a focused growth strategy. As an early-stage exploration company, Kobo Resources offers the greatest upside potential, albeit with correspondingly higher risk. All three share the conviction that sustainable mining is not only morally imperative but also economically superior.