Take Advantage of Future Cash Flows at Bargain Prices Now: Desert Gold, Barrick, and Newmont!

Desert Gold Ventures – 7x Potential!

The company is currently in a very exciting phase of development. Desert Gold is set to transition from an explorer to a producer in the near future; the first production phase is scheduled to start in June, and preparations are underway. The necessary funds of CAD 7.2 million to kickstart production were raised in February. The next stage of scaling and further project development is expected to be funded by future cash flow.

Analysts at GBC took a close look at the stock in a recently published study and concluded with an impressive price target of CAD 0.93. Compared to the current price of CAD 0.11, this represents significant upside potential.

For years, the Canadian company has focused on developing its 440 sq km flagship gold project, SMSZ, in Mali, West Africa. At the end of last year, the company published an updated preliminary economic assessment for the project's Barani and Gourbassi zones, indicating significant upside potential for both the company and its stock. At a gold price of USD 4,070 per ounce, the project was valued at USD 124 million.

Looking ahead, the Tiegba Gold project in southern Côte d'Ivoire, acquired last year, will also be included in the valuation. Desert Gold estimates a potential of several million ounces of gold here, although no drilling has ever been conducted at this site.

But back to the current plans. The initial plans in the preliminary economic assessment called for the commissioning of a more complex CIL (carbon-in-leach) plant. Now the company is starting with a simpler process. A gravity plant, which, according to metallurgical tests, achieves a recovery rate of 68%, is set to mark the start of the production phase. The processed material will be stockpiled. Once production begins and cash flows are generated, a CIL line is to be retrofitted, which will increase the recovery rate to just under 90%.

With production set to begin this summer, a revaluation of the stock is inevitable. On the one hand, this milestone represents a reduction in risk from the investors' perspective. Furthermore, cash flows will enable the project's further development without dilutive new capital rounds.

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Barrick – Blue Chip with 50% Upside

The stock of the world's second-largest gold producer has recently corrected significantly and is currently trading at around USD 38, giving the blue chip a market capitalization of USD 64 billion. The multiples confirm that the shares are undervalued: the 2026 P/E ratio stands at 9.4, and for 2027 at just 7.9! Analysts expect the stock to surge by a good 50% over the next 12 months.

The last few quarters, particularly the final quarter of the past fiscal year, were quite eventful. High prices for precious metals and copper led to a windfall for the Canadian company. Investors are additionally benefiting from higher dividends. Barrick has increased its payout ratio, and a special dividend is also on the horizon. In addition, shareholders can also expect further share buybacks on a significant scale.

Things will get exciting in the second half of the year. Barrick will enter the home stretch of a key strategic goal: the spin-off and IPO of its North American gold assets by year-end. According to analyst estimates, the new company could be valued at at least USD 40 billion. The assets remaining within the group will then consist primarily of operations in Africa and Asia, where Barrick also mines large quantities of copper.

Newmont – Enormous Reserves and Strong Cost Position

Just like Barrick's stock, shares of Newmont, the world's largest gold producer, have also declined in recent weeks and are now, according to the majority of analysts, at an attractive level with upside potential of around 40% over the next 12 months. The P/E ratios for the current and next fiscal year are slightly above Barrick's level. At around USD 100, the US company is currently valued at USD 108 billion.

What makes Newmont attractive in the eyes of many investors is its strong position as a gold miner. Newmont also holds the world's largest gold reserves. As of the end of 2025, these totaled 118 million ounces. The company's "treasure trove" also includes 12.5 million metric tons of copper and 442 million ounces of silver. These exceptionally high figures ensure the continued operation of the mines for decades to come.

Last year, Newmont produced a total of 5.7 million ounces of gold at a cost of USD 1,599 (AISC) per ounce across its 12 mines, generating a record USD 7.3 billion in free cash flow. For the current year, the company has forecast production of 5.3 million ounces of gold at a cost (AISC) of USD 1,680 per ounce. This means the company has better cost control than Barrick.

Correction or no correction, precious metal prices are at historically high levels. Cost increases are well under control, and margin levels remain exceptionally high. This is good news for industry giants like Barrick and Newmont. As an emerging producer, Desert Gold stands out. The stock will soon undergo a gradual revaluation. GBC analysts believe the shares are poised for a significant price increase.