Gold and silver prices have recently reached new all-time highs once again, and there is no end to the rally in sight. Silver in particular has developed spectacularly after breaking through key technical resistance levels and has doubled over the past 12 months. Shares of major companies such as Barrick, Newmont, and Pan American Silver have also at least doubled over this period. Characteristically, the prices of exploration companies have lagged behind the performance of precious metal prices and blue chips. As the bull market progresses, there is much to suggest that explorers will outperform the broader market. One particularly exciting name in this segment is AJN Resources. Beyond the precious metals sector, there are also opportunities for investors to strike gold next year – in the case of Puma, a major turnaround appears to be taking shape.
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AJN Resources – Capital increase on new terms
AJN Resources (CSE:AJN) is exploring gold deposits in Ethiopia and the Democratic Republic of Congo. The Company owns 70 per cent of the Okote Gold project in Ethiopia, which covers an area of 672 sq km and is centrally located in the Adola Gold Belt, a gold-rich region. Its geographical proximity to the Lega Dembi mine, one of the largest gold mines in the country with reserves of 4.5 million ounces of gold, is an advantage.
The goal in developing the little-explored Okote site is to demonstrate the extension of mineralization and the continuation of the trends and formations of the Lega Dembi mine. Historical drill results from Okote show high mineralization grades of up to 8.7 g/t over several meters. Following extensive analysis and testing, a drilling program involving at least 1,500 m of diamond core drilling is planned.
To finance further growth, the Canadians are currently carrying out a capital increase, the terms of which have recently been adjusted. The Company is offering 3.5 million shares at a price of 0.15 each, representing gross proceeds of C$525,000. In addition, subscribers will receive one warrant per share with an exercise price of 0.25 and a term of two years. AJN Resources will use the proceeds to advance the technical, legal, and financial due diligence of Giro Goldfields and the Giro Gold Project, as well as mineral exploration activities.
AJN Resources recently signed a letter of intent to acquire the Giro Gold Project in the Democratic Republic of Congo. The plan is to initially purchase 55 per cent of the 497 sq km area. The project is located in the Kilo Moto greenstone belt. This belt is home to the Kibali Mine, which is majority-owned by Barrick Mining and AngloGold Ashanti and is one of the continent’s largest producers with an annual gold production of around 600,000 ounces. The Giro Gold project is located just 35 km from the Kibali mine.
The share price has already performed very well in recent months. At C$27 million, the Company currently continues to be moderately valued. The potential of the projects and the currently planned acquisition highlight the potential for value appreciation. In addition, CEO Klaus Eckhof, with decades of expertise in the African commodities sector, has repeatedly demonstrated his ability to generate added value for shareholders in the past.
Pan American Silver – Beneficiary of the silver boom
Pan American Silver is one of the leading silver and gold producers in North and South America and has mines in Canada, Mexico, Peru, Brazil, Bolivia, Chile, and Argentina. Most recently, the Canadians provided a positive update on their ongoing exploration programs, which cover a total of 540,000 meters.
With a production history spanning more than 30 years, the Company has now reached an impressive market capitalization of C$29 billion and is well-positioned to capitalize on the silver boom as a blue-chip. Even though analysts see limited upside potential for the stock after its strong run, the fundamentals paint a different picture.
Based on a projected revenue of C$4.9 billion in the current year, experts expect an average increase to C$6.2 billion next year. Given the high price of silver, a disproportionately high increase in profits is on the horizon. After a profit of C$1.2 billion this year, C$2.1 billion is expected in 2026. This means that the 2026 P/E ratio is only around 13.
Puma – Turnaround?
Can investors make a fortune with Puma next year? While investors had to pay a good EUR 60 for a Puma share just two years ago, today the price is only EUR 22 per share. Strategic and operational problems caused the share price to plummet to around EUR 15. The new management has identified a focus on a few product categories and targeted branding as strategic priorities. It is still too early to assess the success or failure of these measures.
The rise in the share price in recent weeks is based on an attractive company valuation following the decline in the share price and burgeoning takeover speculation. The Company is currently valued at EUR 3.2 billion, which is less than half of the C$7.3 billion in revenue expected next year. However, analysts see little upside for the stock. This is understandable given the expectation of losses in the current and next fiscal year. However, a possible takeover is likely to result in significantly higher prices.
The precious metals bull market has created clear winners. Analysts expect Pan American Silver to deliver strong profit growth in 2026. AJN Resources is likely to benefit twice next year. Firstly, from the general catch-up of exploration companies in the later phase of the bull market, but especially from the further development of its gold projects. Puma is exciting because of the potential takeover.
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