Comeback Story of the Year Underway
Desert Gold’s stock is well on its way to becoming the comeback story of 2026. The fact that it has risen from EUR 0.05 to EUR 0.08 so far this year should not deter investors from getting in. After all, the entire company is still valued at less than EUR 25 million. In return, investors are investing in a flagship project in Mali with a resource of over 1 million ounces, where highly efficient gold production is set to begin as early as this summer, so there is no need to fear a major capital increase. The value of the “small mine” alone exceeds the market capitalization. Analysts at GBC Research recommend buying Desert Gold shares with a price target of EUR 0.59.
Corporations are Investing in Mali, Making Desert Gold a Takeover Candidate
But first things first. Gold producers and explorers are celebrating a spectacular resurgence this year. After the local government caused major problems for resource companies, it appears they have sat down at the table and found a solution acceptable to all stakeholders. This was long overdue, as the resource sector is too important for the country’s finances and foreign expertise is needed. The most prominent example of normalization in the country is Barrick Mining. The company has regained control of the Loulo mine, and its license has been extended by 10 years. B2Gold has also announced that it will invest in its operations in Mali to increase resources and production. Incidentally, both companies are potential buyers of Desert Gold’s SMSZ project.
Efficient Production as a Milestone
But even without a takeover, Desert Gold is likely to see cash flow soon. Instead of spending years building a massive mine, the company has decided to start with an efficient production facility in the Barani East sub-area. This would mark a key operational milestone for the company, securing cash flows and attracting the attention of potential partners.
According to the latest update from GBC Research, Desert Gold could process about 200 tons of material per day in June 2026 with a small initial operation. By the fourth quarter, throughput could be increased to around 1,200 tons per day.
Revenue could ramp up quickly, according to analysts. They estimate operating costs per ounce at around USD 1,110. This could allow Desert to generate revenue of USD 33.06 million as early as 2027. EBITDA would then reach a robust USD 20.19 million. And that is based on a conservative gold price assumption of USD 2,850 per ounce. Analysts expect Desert Gold to generate cumulative free cash flow of more than USD 155.9 million over the modeled mine life. GBC notes that the current economic valuation covers only a fraction of the total potential. Click here for the full study.
SMSZ’s Potential is Even Greater
The potential of the SMSZ project is even greater. SMSZ is located in the “Kaba” area in western Mali, one of West Africa’s most important gold regions. The 440 km² area is in the immediate vicinity of the world-class mines operated by Barrick Mining and B2Gold. The production estimated by analysts relates primarily to near-surface oxide mineralization and thus accounts for only about 10% of the currently known resource of approximately 1.3 million ounces. CEO Jared Scharf has repeatedly pointed out that the zones are open along strike and at depth, and that there are additional targets.
Save the Date: Desert CEO Jared Scharf will present at the upcoming International Investment Forum on May 20, 2026. Attendance is free for investors.
The Second Project with Potential
And then there is Desert Gold’s second project. With the acquisition of a 90% stake in the Tiegba Gold project in Côte d’Ivoire last year, the company has intelligently diversified its regional portfolio. As a result, the country has become one of the most stable and investor-friendly mining regions in West Africa. Tiegba covers an area of 297 km². Geochemical anomalies several kilometers long are known to exist. While these have been delineated, they have never been systematically tested. The potential is correspondingly high. The centerpiece of the project is a gold-in-soil anomaly measuring 4.2 km long and 2.1 km wide. Historical samples showed gold concentrations ranging from 50 to over 200 ppb. Desert Gold plans targeted testing following drone surveys.
Desert Gold’s stock appears significantly undervalued – to the point where it almost seems irrelevant whether gold is trading at USD 3,000, USD 5,000, or USD 10,000 per ounce. The 10% of the SMSZ project in Mali that is set to enter production soon alone justifies a higher share price. A genuine revaluation should occur at the latest once gold production begins. Entering at current levels appears promising.
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