DRC Gold – The Underrated Gold Explorer from Africa
The exploration company is fully committed to one of Africa’s most exciting gold regions, the Democratic Republic of the Congo. Here, the company took an important step with the memorandum of understanding signed in the first quarter. The goal is to acquire two majority stakes (up to 65% each) in gold projects in the country.
Of particular interest to investors is the 497 km² Giro Gold project. This project is located just 35 km from Kibali, which, with an annual output of over 600,000 ounces of gold, ranks among the continent’s largest producing mines. The region in the northeast of the Democratic Republic of the Congo is geologically classified as part of the Kilo-Moto greenstone belt. It has a decades-long history of discovering and mining significant gold deposits.
The Giro property comprises the two main deposits, Kebigada and Douze Match. These exhibit a mineralization style and structural setting similar to those of the Kibali Mine, indicating enormous potential. Kebigada has a strike length of 1.3 to 1.5 km and a width of 350 to 400 m and is open at depth in all directions. Historical resource estimates indicate approximately 4 million ounces of gold at approximately 1 g of gold per ton. Douze Match has a strike length of 2.6 km and a width of 600 m. Historically, 313,000 ounces of gold with a mineralization grade of 1.2 g/t were measured. Both resource estimates date from 2012 and were prepared in accordance with the Australian JORC Code.
The second gold project, Nizi, covers 113 km² and hosts the King Leopold Mine, which produced high-grade gold with grades exceeding 10 g/t for approximately 12 years until 1931. Since then, the property has seen little exploration. Furthermore, no historical resource estimate exists. The strike length is approximately 600 m and extends to a depth of 160 to 180 m.
With these two gold projects, the company has the potential to generate significant value for shareholders as exploration progresses. Currently, the shares are trading at CAD 0.195, valuing the company at just CAD 21 million. CEO Klaus Eckhof, a leader with decades of expertise and an excellent track record in the African commodities sector, heads the company.
Barrick Mining – When will the old highs be broken?
Barrick Mining is one of the established companies in the market. As the world’s third-largest gold producer and a major copper producer, the Canadian company has posted robust profits and record highs in recent quarters. Building on this financial strength, the company expanded its share buybacks and significantly increased its dividend payout policy.
Shares are currently trading at around CAD 60, meaning the year-to-date high of CAD 72 is no longer that far off. Analysts currently estimate the stock has an average upside potential of just under 20%. The P/E ratios for 2026 and 2027 for the company, valued at CAD 103 billion, are 11.4 and 9.4, respectively, which can be classified as moderate.
The planned spin-off of the North American gold assets as North American Barrick and its IPO on the NYSE are taking shape. This will unlock hidden reserves, likely boosting the stock price. Not only the new entity, but also the Canadians themselves could become a takeover target. As figures from all major players show, gold grades are declining, and in some cases production volumes are declining, while costs are rising. With the largest strategic restructuring in the company’s history, Barrick is killing two birds with one stone. First, the conglomerate discount will disappear. Furthermore, investors should not underestimate the premiums paid for top-tier and massive assets located in secure jurisdictions. Second, through this process, Barrick is increasingly focusing on its copper operations in Africa and Asia. This holds great appeal for many investors, as copper is considered a key metal for electric mobility, power grids, and battery systems.
First Majestic – Profit Multiplication in the First Quarter
The stock has been performing exceptionally well for quite some time. Even though the shares were still worth around CAD 43 at the end of February, at current prices of CAD 31.50, they have posted a gain of nearly 40% since the start of the year.
With a market capitalization of CAD 16.3 billion and P/E ratios of 36 and 19 for the current and next fiscal year, the stock is no longer cheap; however, this is offset by the silver producer’s projected growth momentum. Analysts estimate further upside of just under 20% for the Canadian company.
The most recent first-quarter figures show revenue rising to USD 477 million, up from USD 244 million in the same period last year. Profit more than doubled to USD 128 million, or USD 0.26 per share.
High precious metal prices form the basis for further rising profits and stock prices among producers. This is clearly evident in First Majestic’s figures, released a few days ago, which show a significant increase in quarterly profit. But Barrick is also setting records. Investors benefited from an improved dividend policy. The spin-off of the North American gold assets will also boost the stock price. By focusing on two gold projects in the Democratic Republic of the Congo, the Canadian explorer DRC Gold is making the right move. The potential is enormous. This will also gradually be reflected in the share price, which is currently trading around CAD 0.20, as exploration progresses.
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