Lahontan Gold: Santa Fe Becomes a Billion-Dollar Project
Top news from Lahontan Gold. In mid-October, the Canadian explorer announced the most significant numerical evidence to date for its flagship Nevada project. An updated preliminary economic assessment (PEA) for the Santa Fe mine calculates an after-tax net present value of USD 820 million. That is more than fourteen times the USD 56.5 million value previously calculated in the 2024 study and represents a multiple of the current market capitalisation of around CAD 150 million. According to current calculations, the internal rate of return exceeds 40%. The calculations were based on gold prices of USD 3,600 and silver prices of USD 49 per ounce. Over an active mine life of 11 years, Santa Fe could generate around USD 1.3 billion in after-tax cash flow. And the precious metals are currently trading well above these levels.
A conventional open-pit operation with heap leaching is planned for the Santa Fe project – a proven and comparatively simple method in Nevada. On average, around 91,900 ounces of gold equivalent annually are to be produced. Following the ramp-up phase, output is expected to rise to an average of approximately 112,500 ounces. In four years of the mine plan, production is even expected to exceed 120,000 ounces. The estimated all-in sustaining costs of USD 2,250 per ounce leave a healthy margin at the assumed gold price.
The sensitivity analysis shows substantial leverage. At current price levels, USD 4,180 for gold and USD 57 for silver, the after-tax net present value would rise to over USD 1 billion, with the internal rate of return at just over 50%. Even in the low-price scenario of USD 3,000 for gold and USD 30 for silver, an after-tax net present value of USD 476 million would remain. The latest market capitalisation of around CAD 150 million reflects only a fraction of this.
However, the study is still a PEA – a preliminary economic evaluation that serves as an early demonstration of feasibility in the gold mining sector. The PEA includes inferred resources, but does not yet report any mineral reserves. The assumptions regarding metal prices, recovery rates, construction costs and production processes also still need to be confirmed in more detailed studies.
Financing also remains a key prerequisite for Santa Fe’s growth plans. Construction will initially require USD 172 million, with a further USD 158 million in sustaining capital expenditure over the mine life. At the end of June, Lahontan had USD 12.4 million in cash. While this gives the company scope for the next stages of work, it is nowhere near enough for the entire mine construction. Therefore, a financing package comprising equity, debt and possibly a streaming or royalty agreement still needs to be put in place in the future. However, given the lucrative growth prospects, it should be possible to find enough investors willing to provide financing.
On the operational side, the company is already working through the next share price catalysts. The environmental baseline studies are complete, and the final plan of operations will be submitted to the US land management agency, BLM. Lahontan expects to secure the permits needed to begin construction in 2027. Moreover, the mine is not a greenfield project: between 1988 and 1995, around 359,000 ounces of gold and 702,000 ounces of silver were already mined at Santa Fe. The current resource comprises 1.195 million ounces of gold equivalent in the indicated category and 1.190 million ounces in the inferred category.
West Santa Fe offers additional upside potential, just 13 km from the main project. A drilling rig arrived on 21 September to drill approximately 3,500 m across 20 holes. Previous drilling had returned 36.6 m grading 3.11 grams of gold equivalent per tonne from surface. New results are expected before the end of 2026; an initial resource estimate remains targeted for year-end. Through the planned acquisition of Emergent Metals, Lahontan aims to gain full control of West Santa Fe, eliminate existing royalties and expand its land package in the Walker Lane to more than 93 km². However, the transaction still needs to be approved and completed.
For risk-tolerant investors, Lahontan Gold is an exciting but highly speculative bet on a persistently strong gold price. The revised PEA shows considerable economic potential at the Santa Fe mine, and the discount to the project value is substantial. Before a revaluation, however, management must secure permits, arrange financing and translate the PEA into more robust plans. If it succeeds, share prices could rise significantly.
Goldman Sachs: Spectacular Results at an Attractive Price
The American investment bank Goldman Sachs significantly exceeded expectations in the third quarter. Net revenues rose 23% to USD 18.7 billion, while net profit reached USD 5.3 billion. At USD 17.01 per share, earnings were well above the previous year’s figure of USD 12.25. The 18.7% return on equity shows how profitably the bank operates in a challenging environment. Its strength does not come solely from trading. Asset management, advisory services and financing also provided a tailwind.
Goldman delivered the second-best quarter in the group’s history and record revenues after nine months. Nevertheless, the shares remain vulnerable to weaker capital markets, declining transaction volumes and tighter regulation. According to analysts’ estimates, the P/E ratio for 2027 is around 12, and 11.4 for 2028. For one of the world’s strongest investment banks, that is not overpriced. Pullbacks therefore remain buying opportunities for long-term investors.
However, most analysts no longer expect significant share price jumps in the coming months. The average price target stands at USD 1,050, implying upside potential of just under 20%. Nine analysts currently rate the shares a Buy, 15 recommend Hold, and one recommends Sell.
Johnson & Johnson: New Drugs Overcome the Patent Cliff
Johnson & Johnson also had good news recently. The US pharmaceutical giant increased third-quarter revenue by just under 6% to USD 25.4 billion. Adjusted earnings of USD 2.59 per share beat the consensus of USD 2.49 but fell short of the previous year’s USD 2.80. The pharmaceuticals business was once again the growth driver. Divisional revenue rose 8% to USD 16.8 billion.
Particularly strong performers were the immunology drug Tremfya, which grew 68% to USD 2.4 billion; the blood cancer drug Darzalex, which rose 15% to USD 4.24 billion; and the cell therapy Carvykti, whose revenue rose 36% to USD 710 million. This helped Johnson & Johnson more than offset the expected slump in its former blockbuster product, Stelara. Its revenue plunged 54% to USD 716 million after patent expiry.
Things are not yet running smoothly in medical technology. The division grew only 3% to USD 8.6 billion, slightly short of expectations. In particular, Abiomed suffered from reluctance to buy in the Middle East and China. The robot-assisted surgical system offers hope: Ottava, which received US approval in July. Further potential comes from the oral immunology drug Icotyde, which analysts even believe has multi-blockbuster potential over the long term.
For 2026, the management board now expects revenue of USD 101 to 101.4 billion and adjusted earnings of USD 11.05 to 11.15 per share. Additional share price momentum could come from the spin-off of the orthopaedics business planned for mid-2027. Following the results, DZ Bank analysts confirmed their Buy recommendation and raised the fair value of the shares from USD 284 to USD 290.
The cooperative bank is not alone in its optimistic assessment. Many other analysts believe Johnson & Johnson still has considerable potential. Overall, there are 19 Buy recommendations versus 7 Hold ratings, with no Sell recommendations. On average, experts see fair value at just under USD 279, only around 10% above the current share price. However, with estimated P/E ratios of 22 for 2026 and 21 for 2027, the shares are no bargain either. Nevertheless, the growing pharmaceutical pipeline, strong cash flow and reliable dividend justify a quality premium. Long-term investors can use share price pullbacks as entry opportunities.
Conclusion
Lahontan Gold offers the greatest share price leverage and the chance of a multiple of its current share price. However, the stock also carries the highest risk of the three presented. Goldman Sachs, meanwhile, impresses with strong earnings and a moderate valuation, but now offers only limited upside potential. Johnson & Johnson remains a defensive quality stock whose valuation currently leaves less room for manoeuvre. Investors looking to speculate and achieve substantial capital gains should choose Lahontan; those seeking solid profits should buy Goldman. Investors who prefer stability should have Johnson & Johnson on their watchlist.
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.
In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
For this reason, there is a concrete conflict of interest.
The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.
Risk notice
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.
The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.
The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.
Stockhouse does not provide investment advice or recommendations. All investment decisions should be made based on your own research and consultation with a registered investment professional. The issuer is solely responsible for the accuracy of the information contained herein. For full disclaimer information, please click here.
