Setbacks in the gold sector: Barrick Mining, Kobo Resources, and Newmont now offer a second chance to get in

Barrick Mining: IPO as a Game-Changer?

The gold industry is experiencing a golden age with prices over USD 4,700 per ounce. Yet Canadian miner Barrick Mining is benefiting only modestly. While operating performance traditionally weakened in the first quarter, costs remain a concern. Total costs (AlSC) are expected to range from USD 1,760 to USD 1,950 in 2026, a significant increase from 2025. It is precisely this tension that makes the quarterly report on May 11 so compelling. Added to this are higher wages and energy prices, which are further squeezing margins. Anyone who wants to understand Barrick needs to look closely.

The planned spin-off of the North American gold assets is the real driver. Nevada Gold Mines, Pueblo Viejo, and the promising Fourmile discovery will be transferred to a separate company, which is set to go public under the name "North American Barrick" as early as 2026. Mark Hill leads Barrick Mining, and Tim Cribb will become the new unit's COO. The IPO will restructure the group and could finally provide the market with a clear valuation of its best assets. The recent share buybacks totalling over USD 1 billion underscore the company's financial strength. Additionally, a new dividend framework secures returns for shareholders. This is more than just hot air.

Reko Diq in Pakistan remains a problem. Due to security concerns, Barrick has extended the review until mid-2027, and the planned production start by the end of 2028 is in doubt. However, the resumption of production in Mali mitigates the production shortfall from sold mines. The combination of a strong gold price, a clear valuation catalyst, and a solid balance sheet makes Barrick an attractive investment. Those who value operational discipline and strategic clarity will find a rare package here. The stock is currently trading at USD 38.72.

Kobo Resources: Drilling Successes and Fresh Capital

Kobo Resources has completed a private placement of CAD 5.5 million. The lead investor was the Chinese fund company Funde Investment Chang Ying, which invested CAD 4.53 million and now holds just under 10% of the shares. The company has thus secured not only capital but also a major strategic shareholder. Such arrangements often signal long-term interest, not just short-term speculative excitement. The funds will be directed toward ongoing drilling at the Kossou project in Côte d'Ivoire, where an initial resource estimate is pending.

The latest drill results from the Road Cut, Jagger, and Kadie zones look promising. A highlight is a 7-meter interval grading 5.06 g/t gold in the Road Cut zone. All three drill holes in the Kadie Zone have intersected gold mineralization. In the Jagger Zone, gold grades have been successfully verified at depth. The mineralization remains open in all directions. A second drill rig is currently being mobilized to increase the pace ahead of the planned resource estimate in the third quarter. More than 41,000 m of drilling has already been completed. This is a solid data foundation. So, those who focus on substance rather than hot air are increasingly seeing concrete figures here.

In addition to Kossou, Kobo Resources is preparing the first drill holes on the Kotobi permit. The equipment is on site, and the drilling contract is about to be signed. Furthermore, the company has partnered with an independent research firm, Atrium Research. The research firm's quarterly reports could attract further institutional investors. The proximity to the producing Yaouré mine is also a structural advantage that could fuel takeover speculation if the project is successful. Anyone looking to invest early in well-managed exploration companies with a clear roadmap should keep Kobo on their radar. The stock is currently trading at CAD 0.295.

Newmont: Between Record Liquidity and Operational Challenges

Newmont generated free cash flow of USD 3.1 billion in the first quarter, the highest figure in the company's history. With a realized gold price of just under USD 4,900 per ounce and costs of only USD 1,029, a substantial per-ounce margin remains. With USD 8.8 billion in cash and cash equivalents and a net cash position of USD 3.2 billion, the balance sheet is in better shape than it has been in a long time. This allows the company to return billions to shareholders through buybacks. Most recently, a new USD 6 billion program was launched.

But there are also stumbling blocks. An earthquake at the Cadia mine is dampening production in the second quarter, the dispute with Barrick in Nevada is dragging on, and Ghana's new royalty regulations are pushing costs up by about USD 25 per ounce. But management has confirmed the annual gold production forecast of 5.3 million ounces. The second half of the year is expected to be stronger. The risks are known, the operational weaknesses are temporary, and have long been factored into the share price.

Unlike in previous cycles, this time it is not only retail investors who are buying, but also central banks systematically. For the first time since 1996, gold accounts for a larger share of reserves than US Treasury bonds.
Newmont is the only gold producer in the S&P 500 and thus the liquid heavyweight for institutional funds. With an average analyst price target of USD 145 and a conservative free cash flow yield of around 10%, this presents an attractive entry opportunity for investors, provided they are willing to accept short-term volatility.

The correction in gold appears to be just a breather. Those who buy now can secure the next upward surge. Barrick Mining is restructuring through a planned IPO spin-off of its best mines and rewarding shareholders with billion-dollar buybacks. Kobo Resources is pushing ahead with drilling at the promising Kossou project following a capital increase by a major Chinese shareholder and is nearing a first resource estimate. Newmont is using its record liquidity for massive share buybacks, while operational disruptions in Cadia and Ghana are dampening short-term production.