Is the banking crisis returning? LAURION Mineral Exploration, Deutsche Bank, and Barrick Mining

Bundesbank warns of crisis – Merz sees banks as over-regulated

In the first nine months of the year, Deutsche Bank achieved a pre-tax profit of a whopping EUR 7.7 billion – around 64% more than at the same time last year. The Frankfurt-based institution shows no signs of crisis, and even loan defaults fell in Q3 compared to the previous year. Nevertheless, while nervousness has been rising again among some US regional banks in recent weeks and the Bundesbank is warning of a potential banking crisis, German institutions feel they are being disadvantaged by overly strict regulations. Last week, Chancellor Friedrich Merz described banking regulations as "too rigorous." Did the chancellor really capture the spirit of the times with this statement?

Gold benefits from uncertainty – Barrick as a basic investment

But regardless of whether or not there are problems in the financial system, gold, the crisis currency, is picking up again after a brief dry spell. The overall global situation is currently causing uncertainty. The US's new peace plan for Ukraine, which reads like a wish list from Russian President Vladimir Putin, not only ignores the interests of Ukraine but also those of Europe and the autonomy of NATO – no wonder this news is unsettling investors.

Physical gold is a classic safe haven. But stocks from the gold sector can also be interesting. Barrick Mining achieved revenue of USD 4.1 billion in the third quarter, generating operating cash flow of a whopping USD 2.4 billion – figures that are likely to be record-breaking. Interim CEO Mark Hill attributed the good results to higher gold production combined with lower costs and rising commodity prices, and immediately increased the dividend. Barrick now plans to pay out 25% more per quarter and continue to buy back its own shares. This situation sounds promising. The fact that the share price has fallen back slightly recently could also be a good argument in favor of the stock, which has generated a return of almost 90% over the past six months.

LAURION Mineral Exploration combines gold and base metals with a long-term commitment

The share price of LAURION Mineral Exploration performed significantly weaker over the same period, but this does not change the prospects that the stock can offer long-term investors. LAURION is a Canadian junior resource company focused on exploring for gold and base metals. The Company's only project is the 57 km² Ishkōday gold and base metal property in Canada's Beardmore-Geraldton Greenstone Belt. High-grade gold, silver, zinc, and copper mineralization along structured corridors is typical of the local geology. For LAURION CEO Cynthia Le Sueur-Aquin, her company is more than just an exploration company; it is explicitly a company that creates long-term value.

Indeed, when looking at LAURION, there are details that distinguish the Canadians from other companies in the exploration sector. Particularly striking is the high proportion of insiders in the Company – around 73% of the Company's shares are owned by insiders in the "friends and family" category. Private investors who invest here are therefore in the same boat as the decision-makers. The results of the latest drilling programs also speak for themselves: 12.8 m with grades of 3.3 g/t gold and 2.6 m with 12 g/t gold send a clear message. Further work is planned to expand the target areas and, ideally, even define production volumes. LAURION also maintains a cooperative relationship with local First Nations residents and has granted stock options to three indigenous communities. The resulting long-term cooperation should give the Company a boost for the further development of its Ishkōday project. Since the property is suitable for both precious and base metals, LAURION could even generate a diversified income stream in the event of production.

How likely is a takeover for LAURION? There is room for surprises

However, the Company itself has long been considering more than just one option: It recently held closed-door meetings with capital market advisors to explore further options for the Company. These likely include a potential takeover if the upcoming drill results significantly increase the value of the property. For investors, LAURION represents a speculative gold and base metals play with that certain something: The stock offers leverage to the gold price due to LAURION's status as an exploration company, could justify higher valuations in the event of strong drilling results, and also benefits from a high insider ratio, a clear ESG strategy, and the fact that its value has often flown under the radar of many investors in recent months. While bank stocks currently seem like a black box and large gold producers appear fairly priced, LAURION Mineral Exploration leaves room for surprises.