Rio Tinto, KSB, Desert Gold Ventures: Three Winners of the Commodity Supercycle

Rio Tinto: The Underrated Copper Champion

Those who want to profit from the commodities boom while investing conservatively will find Rio Tinto, one of the world's leading commodities companies, a good option. The mining giant still generates a large portion of its profits from iron ore, but at the same time has enormous growth prospects in the copper sector. Hardly any other metal is currently benefiting more from global megatrends. The expansion of power grids, the electrification of transportation, the boom in data centers and artificial intelligence, and the modernization of energy infrastructure are consuming enormous amounts of copper. Many experts therefore expect a structural supply deficit in the coming years. Rio Tinto has prepared for this development. With Oyu Tolgoi in Mongolia, the company owns one of the world's most significant copper projects. The underground mine is still under expansion and is expected to be among the world's largest copper mines by the end of the decade. Added to this are the long-established Kennecott Mine in the US as well as other development projects in North America and Australia. The market often still views Rio Tinto as a traditional iron ore producer. As a result, the potential of the copper division is frequently underestimated. Should the expected copper shortage actually materialize, the company could increasingly be perceived as a strategic copper play. Added to this is its solid financial foundation. Rio Tinto generates high cash flows, has a strong balance sheet, and has been one of the most attractive dividend payers in the commodities sector for years. This gives investors relatively defensive exposure to the commodities boom.

KSB: The Hidden Winner of the Investment Wave

It is not just mining operators benefiting from rising commodity prices. Companies that supply the necessary infrastructure are also likely to see excellent utilization rates in the coming years. A particularly interesting candidate is the German company KSB. The pump and valve specialist from Frankenthal is one of the world's leading suppliers to the mining industry. Wherever new mines are being built, or existing facilities are being expanded, pumps, valves, and process systems are needed. These products are KSB's strength. The stock has already risen sharply in recent months. Nevertheless, the long-term story appears to be far from fully priced in. The global hunger for raw materials is forcing the mining industry to make investments worth billions. Many projects were postponed during the years of weak commodity prices and could now be back on the table. This creates attractive leverage for KSB. Of particular interest is the high-margin service business. Pumps and systems must be regularly maintained, modernized, and replaced. This generates recurring revenue, making the business significantly more stable than that of traditional project suppliers. At the same time, management is consistently working to improve profitability. The "Mission TEN30" program aims to increase the operating margin to over 10% by 2030. Digitalization, automation, and more efficient processes are expected to help achieve this. KSB is not a spectacular high-flyer. However, the group offers something that many investors in the commodities sector are looking for: a strong market position, solid profits, and indirect exposure to rising global investments in mining and infrastructure.

Desert Gold: Hot Speculation in the African Gold Belt

There is a lot of activity right now in gold-related investments. While there have been minor price corrections recently, this crisis-proof precious metal has seen increased investor demand for years. While many investors focus on major gold producers or on Xetra-Gold or Euwax Gold, the most spectacular price movements often occur among small-cap explorers. Desert Gold Ventures falls squarely into this category. The Canadian company operates primarily in Africa and, with the SMSZ Project (Senegal-Mali Shear Zone), owns one of the largest contiguous exploration areas in West Africa. This stock market story could hardly be more exciting. The projects are located in the immediate vicinity of several top-tier mines. Neighbours include industry heavyweights such as Barrick, B2Gold, Allied Gold, and Endeavour Mining. The Senegal-Mali Shear Zone is considered one of the most productive gold regions in the world. The neighbouring mines alone hold resources of several million ounces of gold. B2Gold's Fekola Mine, Endeavour's Sabodala-Massawa Project, and Barrick's Loulo-Gounkoto Mines are among the most productive gold mines in Africa. More than 70 million ounces of gold have already been proven there.

Desert Gold also controls an area of approximately 440 km² in the African Gold Belt. Numerous gold deposits have already been identified. The resource identified to date totals more than 1 million ounces of gold. Although the Canadians have not yet produced any gold there, the company already holds the necessary permits for mining operations. According to a recent economic assessment, a relatively simple oxide gold mine could be developed using the cost-effective heap leach process. This would result in significantly lower investment costs than many competing projects. Desert Gold's management is working to further expand the existing resources while simultaneously increasing the project's economic attractiveness.

High Gold Leverage: Low Share Price

Gold developers like Desert Gold have strong leverage to rising commodity prices, as every additional dollar in the gold price flows almost directly into the project's profitability. This is precisely why Desert Gold could currently be on the verge of a particularly exciting phase. Especially in times when gold prices are near historic highs, the profitability of such projects often changes dramatically. Many deposits that appeared only moderately attractive at gold prices of USD 1,800 or USD 2,000 per ounce suddenly become highly profitable assets at significantly higher prices. A recent company presentation from spring 2026 shows, for example, that the SMSZ project, assuming a gold price of USD 2,850, has an after-tax value of approximately USD 61 million and an internal rate of return (IRR) of 57%. This means that the invested capital would be recouped in less than three years. Based on an assumed gold price of around USD 4,100 per ounce, the project's value is already around USD 126 million after taxes, with a return of over 100%, according to the company's own figures. By comparison: Desert Gold's current market capitalization is just over USD 33 million, or the equivalent of CAD 47 million. The price of the precious metal is now above USD 4,300 and could target the record high of over USD 5,000 again in the medium term.

Desert Gold has secured a new project in Côte d'Ivoire that has seen virtually no drilling to date, but whose region is geologically considered a continuation of the structures where numerous significant gold deposits have already been discovered. Initial soil samples have already revealed notable gold anomalies. If successful, this could give rise to an entirely new exploration story there. Investors would thus gain a second growth driver for their portfolios in addition to the production potential in Mali.

Emerging Takeover Potential

With every successful drilling program, the likelihood that major producers will take an interest in the properties also increases. Especially in an environment of high gold prices, pressure on the major mining companies is growing. Many producers are struggling with declining reserves and need new projects to secure their production in the long term. In-house discoveries are becoming increasingly rare and expensive. That is why these companies are increasingly turning to acquisitions of small exploration companies. The fact that Desert Gold holds a strategically attractive land position in close proximity to existing infrastructure fuels takeover speculation. Should the gold price remain at elevated levels or even rise further, the value of such projects is likely to increase significantly. Of course, Desert Gold remains a speculative bet. The company is not yet generating recurring revenue and is dependent on the success of further exploration. At the same time, however, the current market valuation offers considerable potential relative to the project's size.

For speculative investors, this creates significant leverage should the Canadians prove further gold deposits or successfully implement the next development phase. Should the well-connected management team led by CEO Jared Scharf—who has many years of experience in West Africa and previously worked for companies including Barrick, Centamin, and Avocet—discover additional resources or bring on a major partner, market sentiment could shift rapidly. For risk-conscious investors, Desert Gold is thus one of the most exciting plays on the ongoing gold bull market. The combination of more than one million ounces of gold resources, a fully permitted development pipeline, potential production in the near future, and additional exploration upside in Côte d'Ivoire offers plenty of upside potential.

The commodities supercycle currently offers investors opportunities at very different levels. Rio Tinto combines attractive dividends with the potential of a future copper giant. KSB, in turn, benefits as an equipment supplier from every new mining project and every expansion investment. As an explorer, Desert Gold provides the greatest leverage to rising gold prices and also offers takeover potential. Together, the three stocks form an interesting trio of speculation, fundamentals, and infrastructure—and thus three different ways to bet on one of the most exciting trends of the coming years.