Underestimated prospects in the precious metals sector: Lahontan Gold, Barrick Mining, and First Majestic Silver are the favorites

Lahontan Gold – The share price knows only one direction!

The Canadian exploration company is focusing on the further development of its flagship Santa Fe project in the US state of Nevada. By the mid-1990s, 359,000 ounces of gold and 702,000 ounces of silver had been produced here. In total, the company controls five separate properties in the Walker Lane Trend with a total area of 28.3 sq km. The Walker Lane Trend is an approximately 800-km-long geological corridor stretching from Oregon through Nevada to California, home to numerous deposits from which tens of millions of ounces of gold have already been mined.

A resource estimate for the Santa Fe Project from October 2024 showed 1.539 million ounces of gold equivalent in the indicated category and 411,000 ounces of gold equivalent in the inferred category. An update will be provided soon. New drilling and additional claims could significantly increase the resource.

The economic analysis based on this historical data yielded a project value of USD 471.6 million and a high IRR of 66.6% at a gold price of USD 4,000. The current gold price is significantly higher. This, combined with the planned use of AI-driven geological modeling and satellite monitoring to reduce exploration costs by up to 80% and minimize surface disturbance, should further enhance the project's economics. Capital costs are currently estimated at approximately USD 100 million.

Recent drilling data from the West Santa Fe project classifies the property as a significant growth driver with near-surface massive sections of gold mineralization. This could represent additional potential of up to 1 million ounces of gold, which could be extracted cost-effectively using open-pit mining methods.

Lahontan Gold is currently undergoing the state approval process in the state of Nevada. The experienced team led by company founder and CEO Kimberly Ann is targeting production in 2027. The company recently announced the addition of Antony Rowe and Miranda Werstiuk to its team. Both bring extensive experience in finance and mining, among other areas, and will support the exploration company's transformation into a producer.
In the past, Kimberly Ann and her team have demonstrated an excellent understanding of geology as well as timing. Investors can still position themselves for upcoming milestones. The stock is expected to list on the NYSE this year, likely attracting strong investor interest.

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Barrick Mining – Many price drivers

The shares of the world's second-largest gold producer reached an all-time high at the beginning of the year and are currently consolidating at a high level. The market capitalization is currently USD 77 billion. The mining giant performed strongly last year thanks to high gold and copper prices and expanded production. Investors benefited from this in the form of higher dividends and share buybacks, among other things.

Despite the prospect of production declines and rising costs in the current year, analysts expect a strong increase in profits of just under 30% to USD 6.4 billion. According to experts, growth is expected to be around 11% to USD 7.1 billion in 2027. Strong growth in free cash flow is also assumed for both periods, at USD 5.5 billion and USD 7 billion.** This underscores how solid the group's position is. The funds can be used for dividends, share buybacks, debt repayment, and also for investments and acquisitions.

The moderate multiples also speak for themselves, with a 2026 P/E ratio of 11.8 and a 2027 P/E ratio of 10.4. Analysts are forecasting an average target price of around USD 59, which means the stock has upside potential of just under 30%.

On the news front, there have been some particularly exciting developments in Africa and North America recently. In Mali, the Canadians signed an important agreement with the military government to extend the mining license for the Loulo-Gounkoto complex by 10 years. This significant asset represents an annual production of up to 750,000 ounces of gold and is one of the largest gold mines on the continent.

In terms of shareholder value, investors are looking to the planned separation of North American gold assets and their IPO. Market participants expect this move to increase reserves. In addition, the new company and Barrick itself could become takeover targets. All in all, there are many good reasons why the stock is a core investment in the sector.

First Majestic Silver – Mexico silver play plus US gold leverage

The Canadian mining company produced around 31 million ounces of silver equivalent last year, including 15.4 million ounces of silver – a record figure. Its most important assets include the four Mexican mines San Dimas, Santa Elena, La Encantada, and Los Gatos. The shares are currently trading at around CAD 36, up almost 60% since the beginning of the year. This gives the company a market capitalization of just under CAD 18 billion. The key figures for the current and next fiscal year are significantly higher than the industry average, with a 2026 P/E ratio of 36.5 and a 2027 P/E ratio of 22.8. Analysts believe the shares have upside potential of only around 10%.

In addition to the aforementioned Central American silver mines, the Canadians also own Jerritt Canyon, a producing gold mine in the US state of Nevada. First Majestic recently reported the results of the completed 18,300-meter drilling program on the more than 30,000-hectare property. New and existing targets were explored at depth and on surface, delivering compelling results and reinforcing the company's belief that the property has enormous potential.

High precious metal prices are providing tailwinds for all three companies. Mali and North America, in particular, are the factors that should give Barrick a significant boost. The high silver price and the further development of the gold asset in Nevada are the price drivers for First Majestic. But both majors are under pressure to secure new reserves. Lahontan Gold could benefit from this as a takeover target. Excellent drilling data, huge properties in the precious metal-rich Walker Lane Trend, high indicated economic viability, a first-class team of experts, and a listing on the NYSE are the perfect ingredients for further price increases.