Reasons for the gold rush in 2025 – How Barrick Mining, Kobo Resources, and Newmont are positioned

Barrick Mining – Operational challenges despite the gold rally

Barrick's latest quarterly report paints a mixed picture. The Company is clearly benefiting from historically high gold prices, which is reflected in strong profits and cash flows. At the same time, cost pressures remain a burden. Total costs (AISC) rose slightly over the course of the year, driven by higher labor and energy expenses. Added to this is a decline in production, partly due to the temporary closure of the important Loulo-Gounkoto mine in Mali. The gold rally is cushioning operational weaknesses, but sustainable margin strength requires better cost control and stable production.

Beyond the quarterly figures, Barrick is setting important strategic priorities. The Company is considering an IPO for its North American gold assets. These would be bundled into a new, publicly traded company, with Barrick retaining a majority stake. The logic is straightforward. Focused gold producers with top assets in safe regions such as Nevada and the Dominican Republic are often valued higher by the market than global conglomerates. This move could have a significant value release effect, especially as the promising Fourmile project in Nevada would be added. The aim here is to position the portfolio optimally.

A major source of uncertainty has now been removed. In December, Barrick reached a comprehensive settlement with the Malian government, ending the two-year dispute over the Loulo-Gounkoto complex. The Company regains complete operational control, the mining license is renewed, and all legal proceedings are discontinued. The return of this productive asset, which produced over 700,000 ounces last year, is a decisive operational and psychological gain. In a phase of high gold prices, this adds a more stable cash flow to the portfolio and removes a major country risk from the agenda, which enhances the overall investment story. The stock is currently trading at USD 40.91.

Kobo Resources - Drills in continuous operation, focus on resources

For investors in gold explorers, Côte d'Ivoire has been an exciting place for years. One of the players that stands out here with a clear portfolio is Kobo Resources. The Company combines an advanced core project, Kossou, with a promising satellite project, Kotobi. Both are located in an extensive land package and benefit from the dynamic development of the region. The strategy is well thought out. While Kossou is rapidly working towards an initial resource estimate, Kotobi is establishing a second foothold through systematic exploration. Currently, the focus remains on the flagship Kossou project. As confirmed at the Resourcing Tomorrow conference, drilling is continuing almost non-stop here. Over 35,000 m have already been drilled, and the program is ongoing.

The planned first mineral resource estimate is being deliberately postponed. The reason is positive, as new mineralization continues to be discovered, and the Company does not want to interrupt this successful streak before fully understanding the extent of the system. The goal is ambitious. The three known zones could connect to form a continuous trend of over 3.5 km. At the same time, the second project, Kotobi, is regaining importance. After initial work, it was prioritized in favor of Kossou, but now its potential is being systematically addressed. Based on geophysical and geochemical campaigns, four specific target areas have been defined. The next steps are already planned: a mechanized prospecting program is scheduled to start early next year, followed by initial drilling in February.

Kobo remains a classic exploration play. However, the current momentum is remarkable. The ongoing drilling success in Kossou points to a robust system, while the reactivation of Kotobi offers the option of further growth. For investors entering at this stage, it is a bet on the methodical development of a promising land package in an established gold region. Regular updates, approximately every three weeks, also provide transparent tracking of progress. With its first mineral resource estimate, the Company could appear on the radar of larger producers looking for acquisition targets. The stock is currently trading at CAD 0.25.

Newmont - Gold in a new light: Why this cycle is different

The current gold rally feels different from its predecessors. It is driven not only by short-term speculation, but also by deeper structural shifts. Central banks have been massively expanding their holdings for years, while private investors increasingly see the precious metal as a long-term store of value in a geopolitically uncertain world. This demand is supporting the price level at a structurally higher level. Unlike in the past, gold is acting less as a tactical commodity and more as a fundamental portfolio hedge that remains stable regardless of economic cycles.

In this environment, a gold producer such as Newmont benefits not only from the high gold price but above all from its operational discipline. The most recent quarter showed robust free cash flows, enabling the Company to reduce its debt burden to almost zero. Crucially, margins remained stable despite a slight decline in production, underscoring the quality of the portfolio and efficient cost management. The proceeds generated are being used to increase shareholder returns and strengthen the balance sheet, which is a clear strategic advantage in a capital-intensive sector.

Despite these solid fundamentals, the stock is trading at a significant discount to its direct competitors. This valuation difference is difficult to justify when considering the economies of scale, strong cash generation, and now a debt-free balance sheet. The market appears to be placing mistrust in the sector or overreacting to short-term issues, such as M&A rumors, over actual company performance. For value-oriented investors who believe in the new gold supercycle, this discrepancy could present an opportunity. The stock is currently trading at USD 94.09.

The gold rally, driven by structural factors, is creating a differentiated environment for miners. Barrick Mining is countering operational weaknesses with strategic portfolio optimization and the resolution of the Mali conflict. Kobo Resources, an explorer, is pushing ahead with its drilling program in Ivory Coast and working towards its first mineral resource estimate. Newmont, on the other hand, impresses with its operational discipline, an almost debt-free balance sheet, and strong cash generation, but may be undervalued by the market.