Desert Gold: On the Way to Becoming a Producer – Analysts Reaffirm Buy Recommendation
Desert Gold shares appear poised for a year-end rally, largely independent of the gold price. GBC Research seems to share this view. The analysts recently reaffirmed their Buy recommendation for the gold explorer’s shares with a price target of CAD 0.93 (EUR 0.59). The shares are currently trading at around EUR 0.08.
Analysts see progress in the company’s transition from a pure-play gold explorer to a producer. In Mali, near mines operated by gold producers Barrick Mining and B2Gold, Desert Gold is building a gold processing plant with a capacity of 200 tonnes per day. Both the plant and the required generator have now arrived at the Barani East section of the SMSZ project. In addition, the main access road has been repaired. Commissioning is now scheduled to take place by the end of October 2026. Processing is scheduled to begin in November. Initial gold recoveries are expected in the fourth quarter.
According to GBC, actual operating data will be decisive for the valuation going forward. These include, in particular, processing capacity, gold recovery and production costs.
For long-term development, the analysts see further potential in the SMSZ project, which covers around 440 km². In total, Desert Gold has measured and indicated gold resources of 336,800 ounces there, as well as inferred resources of 879,900 ounces. A preliminary economic assessment (PEA) describes the possibility of an open-pit operation over 10 years. This larger undertaking is independent of the processing plant currently under construction. Further exploration opportunities also exist in Mali and Côte d’Ivoire.
Nordex: Can the Downtrend Be Reversed?
While Desert Gold shares have yet to respond to the positive prospects, Nordex shares have already jumped. The downtrend remains intact, but last Friday could have been a turning point. That was when preliminary figures triggered a share price jump of more than 12%.
Nordex exceeded market expectations with its preliminary figures for the third quarter of 2026 and raised its full-year guidance. In the third quarter, the wind turbine manufacturer increased revenue from EUR 1.71 billion to EUR 2.19 billion. Operating earnings before interest, taxes, depreciation and amortisation (EBITDA) more than doubled from EUR 136 million to EUR 278 million. The high-margin service business is also contributing increasingly to the positive performance. Free cash flow rose to EUR 379 million in the third quarter, up from EUR 149 million the previous year. Cash and cash equivalents increased from EUR 1.93 billion at the end of 2025 to EUR 2.33 billion. Nordex intends to publish its full quarterly figures on November 5, 2026.
The strong business performance is expected to continue. Nordex therefore raised its full-year 2026 EBITDA margin guidance from 8.0% to 11.0% to 11.5% to 12.5%. Revenue expectations remain unchanged at EUR 8.2 to 9.0 billion.
While the stock market celebrates the figures, RBC remains sceptical. The analysts see the fair value of Nordex shares at EUR 36. The share price currently stands at EUR 39. Although the analysts have been right with their Underperform rating in recent months, anyone who followed them also missed last year’s year-end rally. The analysts have not considered Nordex shares a Buy since October 2025. At that time, the shares were trading at around EUR 25 and rose to over EUR 50 by April this year. RBC’s scepticism stems from the uncertain market environment in Germany. So far, however, there is no trace of this in Nordex’s figures.
Aixtron: Demand Is Translating into Revenue
Like Nordex, Aixtron also published preliminary third-quarter 2026 figures on Thursday evening. Like the wind turbine manufacturer, the semiconductor equipment manufacturer also exceeded market expectations. Order intake rose sharply from EUR 124 million in the prior-year quarter to around EUR 275 million, well above the analyst consensus of EUR 214.6 million. Orders also increased sharply compared with the second quarter of 2026.
Strong demand for equipment used in laser applications for AI data centre communications is also increasingly boosting revenue performance. This is not something to take for granted. In the past, Aixtron has repeatedly been seen as a beneficiary of various trends, yet it has rarely translated that potential into tangible results. For example, Aixtron generated roughly as much revenue last year as it did back in 2011.
For the current reporting period, Aixtron reported revenue of EUR 184 million. This was significantly above the EUR 119.6 million in the prior-year quarter. Profitability improved even more. Thanks to a favourable product mix, the gross margin rose from 39% to around 48%. Operating profit (EBIT) climbed from EUR 15.4 million to around EUR 57 million. Aixtron thus achieved an EBIT margin of 31%, up from 13% in the prior-year quarter, also significantly exceeding analysts’ expectations. Chief Executive Felix Grawert sees improved visibility for the 2027 financial year thanks to the high order intake. The company confirmed its guidance for the current year. The full quarterly figures are due to be published on October 29.
Conclusion
Despite the positive share price reaction, Aixtron shares remain in a correction. This also applies to Nordex. However, both companies show that operating developments support rising share prices. For Desert Gold, GBC’s Buy recommendation is not the only factor supporting rising share prices. The probability that the company will actually produce gold this year has increased significantly. The current share price does not yet appear to reflect this.
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