Outperformers to Buy for 2025: JinkoSolar, Barrick Gold, Newmont, Thunder Gold

Newmont and Barrick Gold: Regaining strength through acquisitions?

Newmont and Barrick Gold are among the disappointments in the gold sector in 2024. The two industry giants have disappointed investors with their quarterly figures, particularly in the second half of the year. Both are struggling with high costs and operational challenges at their mines. Newmont appears to be responding and reducing costs. As Bloomberg News reports, at least 10 executives are set to leave the Company. Additionally, various business units are being consolidated, and regional control of activities is being reorganized. This restructuring may also be a consequence of the merger with Newcrest, which has likely resulted in overlaps in administration.

While Newmont is making cutbacks, the situation of Barrick Gold in Mali seems to be escalating. There, Barrick operates the country's largest gold mine, the Loulo-Gounkoto complex. For months, there have been disputes with the Malian military junta, particularly regarding tax payments. Recently, Barrick employees were even arrested. Now, the conflict has escalated further: reports indicate that the government is blocking the transport of gold from the mine. In response, Barrick announced: "Operating conditions on the ground have significantly deteriorated with the arbitrary detention of employees and the blocking of gold shipments. If shipments remain suspended, Barrick will be forced to cease operations, further undermining the viability of this important economic driver for Mali." However, the Company continues to be willing to engage in dialogue with the government.

Thunder Gold: Canadian project with takeover potential

Investors in Thunder Gold have practically eliminated this geographical risk: The company is focused on exploring a large-tonnage, low-grade deposit in central Canada. Its flagship project is Tower Mountain, located in the eastern-central region of the country and covering around 2,500 ha. The regional infrastructure can be described as excellent, featuring access to a port, the Trans-Canada Highway, and the national rail network.

Recently released surface channel sample results are encouraging, with more than 82% of the channel sampled intervals grading above 0.30 g/t Au, three times higher than the 41,000 metres of diamond drill data collected to date. A total of 51 channel samples from the P-Target outcrop were collected and assayed. Results range from 0.054 g/t Au to 25.3 g/t Au. Management believes that the mineralization at P-Target could extend 500 m to the southeast based on the recently completed surface soil geochemistry. Drilling is in progress to confirm the promising results from the surface channel sampling and drill results are expected to be completed before the end of December.

Thunder Gold's promising path is also reflected in the share price. Despite the consolidating gold price, the share price has risen from CAD 0.03 in August to the current CAD 0.05. With a market capitalization of CAD 10.3 million, the Company remains far from overpriced. If the positive drilling results continue and industry giants Newmont and Barrick set the takeover carousel in motion, significantly higher prices are realistic.

JinkoSolar: On the trail of OPEC?

The solar industry has undoubtedly been one of the losers in the stock market in 2024. Jinkosolar currently sees its own stock as significantly undervalued. As a result, the Company has extended its share buyback program until June 30, 2026, and increased its budget. The world's largest solar company aims to repurchase shares worth a total of USD 350 million. Of the total volume, USD 134.50 million has already been invested since July 2022, leaving USD 215.50 million remaining. In the current year, Jinko shares have lost around 19% of their value and are currently trading at EUR 25.70. At the end of August, the security was even trading at just under EUR 16, but it recovered again after the Chinese government announced its economic stimulus package.

A recent report in the Frankfurter Allgemeine Zeitung attracted significant attention. According to the report, 33 Chinese solar companies plan to coordinate more closely in the future. Following the example of OPEC, the cartel, which is said to account for around 90% of global solar module production, aims to coordinate the expansion of production capacities in the future in order to regulate price declines. According to the FAZ report, production volumes are to be capped, and minimum prices agreed upon.

JinkoSolar remains a foundational investment in the solar sector. However, a purchase is not obvious at present. The situation is different for gold. The consolidation in the price of the precious metal is likely to come to an end soon. It is expected that Barrick and Newmont will soon abandon their cautious stance on acquisitions and drive the M&A cycle forward. Thunder Gold boasts an exciting project with the potential for up to 2 million ounces in a legally secure jurisdiction. The share price performance of the past few months has been positive; further news flow is expected, and the Company could become an acquisition target.