Take note! The stock market is (still) ignoring key developments at Desert Gold, Evotec, and Mutares!

Desert Gold Ventures – Start of gold production within reach

The company is in an exciting and promising phase for investors: the first gold production is within reach and is scheduled for July. The West African nation of Mali is where the action is taking place. Here, the Canadians are aggressively advancing the development of the 440 km² flagship SMSZ gold project. The necessary funding of CAD 7.2 million was raised at the beginning of the year. The next phase of scaling up and further project development is to be funded from future cash flow—an important point for investors, as it avoids dilution.

Construction preparations are progressing rapidly. An area of approximately 52,000 m² has been cleared, surveying work is complete, and the first foundation structures have been erected. Technical acceptance of the modular gravity plant, with a capacity of approximately 200 tons per day, has been completed, and it is currently being transported to the site. The critical water supply is also currently being developed.

Currently, the company is valued at approximately CAD 50 million at a share price of CAD 0.135. Meanwhile, GBC analysts have set a price target of CAD 0.93, representing enormous upside potential. The Preliminary Economic Assessment (PEA) for the Barani and Gourbassi zones of the SMSZ project, updated last year, was already impressive. At a gold price of USD 4,070 per ounce, the project value was calculated at USD 124 million. Approximately 1 million ounces of gold resources are currently in the ground. And only 10% of the project has been explored so far!

Looking ahead, the Tiegba Gold project in southern Côte d'Ivoire, acquired last year, will also be included in the valuation. The company estimates a potential of several million ounces of gold here.

At the latest, with the start of production and the cash flows generated starting this summer, the stock will gradually undergo a revaluation. The project value and analysts' price targets are significantly above current market prices.

Interested parties can gain exciting insights into the company directly from CEO Jared Scharf during the 19th virtual International Investment Forum (IIF) on May 20. Click here to register for free.

Evotec – Is a turnaround coming this year?

The German biotechnology company researches and develops drugs and collaborates with major pharmaceutical companies to more quickly identify active compounds against diseases such as cancer, diabetes, or Alzheimer's. In doing so, the company relies on AI, high-throughput screening, and cell research to make drug development more efficient.
Revenue is generated through research contracts, partnerships, and investments in drug development projects.

Evotec is undergoing restructuring or a transformation process; the company itself refers to this as a transitional year. The stock market is closely watching these developments. The stock has recovered somewhat from its low of around EUR 4, though just over three years ago it was still trading at EUR 20.

In the first quarter, high restructuring costs, lost licensing revenue, and currency effects significantly weighed on revenue and earnings. The company, however, described the figures as "not very surprising." Revenue fell by over 20% to just under EUR 157 million; the bottom line showed a loss of just under EUR 122 million, four times the figure for the same period last year. Nevertheless, the group is confident that it will soon return to a growth trajectory thanks to ongoing cost-cutting measures and a strategic refocus. The double-digit growth in new orders can be seen as the first sign of this. Analysts estimate that the shares have an average upside potential of around 20%.

Mutares – Capital increase enables significantly accelerated growth

The recently completed capital increase, amounting to roughly 20% of the share capital and bringing EUR 105 million into the private equity company, put pressure on the share price. Having recovered slightly, the shares are now trading at around EUR 26. A substantial dividend of EUR 2 per share is expected this summer. This represents the minimum under the company's sustainable dividend policy. If the growth plans come to fruition, shareholders can look forward to higher payouts in the coming years.

With the fresh capital, Mutares will drive its international expansion, particularly in the US and Asia. In the United States alone, the company has its sights set on acquisition opportunities with a revenue volume of EUR 4.8 billion. Most recently, the company specified its medium-term goals. By 2030, annual growth in consolidated revenue and net income for Mutares Holding of at least 25% per year is projected. The market has not yet fully priced in what this means for Mutares' financials. Analysts at Sphene Capital have set a price target of EUR 49—nearly double the current price!

Every market phase produces its winners. Forward-thinking investors are now focusing on Desert Gold. The Canadians are on the verge of commencing gold production. This will generate cash flows and drastically reduce the risk profile—both of which are value drivers for the stock, which is currently trading at just CAD 0.135. Analysts cite a price target of CAD 0.93! Experts are also bullish on Mutares. The company recently raised its medium-term targets significantly and maintains an attractive dividend policy. Evotec is not out of the woods yet, but there are early signs of an operational recovery.