November 11th, 2025 | 07:05 CET
The gold price is poised for its next leap – with Formation Metals, Barrick, and B2Gold outperforming!
The gold price is consolidating at a high level. Analysts expect the rally of the yellow metal to continue soon, as the overall conditions remain favorable. It is not only its classic role as a "safe haven" in times of geopolitical tensions, uncertainty, and inflation fears. The massive demand from central banks around the world is playing an increasingly decisive role. For years, central banks, especially those in emerging and developing countries, have been stockpiling their gold reserves on a historic scale. These are signs of growing mistrust in the stability of traditional reserve currencies, especially the US dollar, and a desire for diversification. With precious metals continuing their upward trend, gold stocks are high on the list of favorites. Away from the blue chips, there are exciting investment stories, such as Formation Metals, which have so far been overlooked by investors.
time to read: 3 minutes
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Author:
Carsten Mainitz
ISIN:
FORMATION METALS INC | CA34638F1053 , BARRICK MINING CORPORATION | CA06849F1080 , B2GOLD CORP. | CA11777Q2099
Table of contents:
"[...] Both the geology and the infrastructure around the project make for a very attractive cost structure. We expect to be able to produce at 50% of the current gold price. [...]" Bill Guy, Chairman, Theta Gold Mines Limited
Author
Carsten Mainitz
The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.
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Formation Metals – Things are getting exciting!
There are several reasons why the shares of the Canadian gold explorer could perform strongly in the future. Let's start with the big picture: a gold bull market is typically characterized by blue chips initially tracking the performance of the underlying gold. After a certain time lag, it is the turn of the exploration companies. However, the real upside potential lies in the details: project location, size and quality, key economic data, sufficient funding for drilling programs, and ultimately the Company's valuation. All these factors speak in favor of Formation Metals.
The Company's main exploration area is the 4,400-hectare N2 Gold Project in the Canadian province of Quebec, located in the Abitibi Greenstone Belt. Well-known operators such as Agnico Eagle Mines (in the LaRonde and Val-d'Or regions) and Osisko Mining (in the Malartic area) are active in this historic mining region.
The N2 Gold Project lies just 1.5 km east of the former Vezza Gold Mine. A total of 236 diamond drill holes, covering 55,517 meters, have already been completed. This has resulted in 871,000 ounces of gold as a historical resource, which can be further explored in both length and depth. The goal is to prove a deposit of around 2 million ounces of gold - a benchmark that often makes a project highly attractive for potential acquirers. As a rough guideline, CAD 100 or more is typically paid per ounce of gold in the ground.
At the end of October, the Company secured extensive financial resources of CAD 8.5 million through a capital increase in order to significantly expand the current drilling program to 30,000 meters. The drill targets include the Central Zone, which accounts for more than half of the historical resource, but also the A Zone above it and the RJ Zone to the west. **It will be exciting to see whether a significant extension of the deposits can be proven at depth, as historical data strongly suggests.
The Canadian company's drilling program is fully financed through the end of 2026. This should result in a strong news flow with positive momentum for the share price. The Company is currently valued at just CAD 15 million at around CAD 0.30 per share.
Barrick – Strong figures: Higher dividends and share buybacks
The world's second-largest gold producer recently published excellent quarterly data, reflecting the strong performance of the gold price. Barrick increased its revenue in Q3 by 23% to USD 4.15 billion. Adjusted quarterly earnings rose to nearly USD 1 billion, an increase of 86%, exceeding market expectations. Free cash flow rose by an incredible 274% to USD 1.5 billion. In light of this strong performance, Barrick announced plans to increase its quarterly dividend by 25% and expand its current share buyback program by USD 500 million to a total of USD 1.5 billion. Together, these measures provide a solid foundation for further share price appreciation.
B2Gold – Mixed figures
B2Gold also recently published its figures. However, these show only a small quarterly profit of USD 0.01. Although production increased significantly, resulting in a 75% rise in revenue to USD 783 million, operating income was modest due to a disproportionate increase in royalties and taxes. The high losses from derivative instruments, which totaled USD 106 million, were disappointing. Overall, the Canadians confirmed their production outlook for the current year. A dividend of USD 0.02 per share will be distributed. Analysts assign the stock an average upside of 60%.
Barrick's figures prove it: **profits among gold producers are booming – leaving more room for dividend increases, share buybacks, and strategic acquisitions. Formation Metals could well become such an acquisition target. The Canadian explorer is fully financed through the end of 2026 and is expected to deliver a steady stream of positive news as it advances its gold project and continues its extensive drilling program, potentially giving the share price further momentum.
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.
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